Crypto startup Bitwise seeks approval of U.S. SEC for new Bitcoin ETF
Bitwise Asset Management, a leading provider of the cryptoasset index and beta funds, announced on Thursday that it has filed an initial registration statement with the U.S. Securities and Exchange Commission (SEC) for a new physically held Bitcoin exchange-traded fund (ETF). This new proposed ETF would address the shortcomings of the previous attempts.
As per the press release, the proposed Bitwise Bitcoin ETF would track the Bitwise Bitcoin Total Return Index, which would capture the full value of an investment in Bitcoin.
The differentiating factor that makes the proposed Bitcoin ETF different from earlier attempts is the fact that it will rely on regulated third-party custodians to hold its physical Bitcoin, and the index will take prices from a number of crypto exchanges, representing the vast majority of verifiable Bitcoin trading.
Speaking about the latest development, John Hyland, Global Head of Exchange-Traded Funds for Bitwise said, “While there can be no assurance that the 19b-4 application will be granted or the SEC will review and ultimately accelerate the registration statement, we are optimistic that 2019 should be the year that a Bitcoin ETF launches.”
Echoing similar optimism, Matt Hougan, Global Head of Research said, “The SEC has asked thoughtful and relevant questions about the quality of the crypto trading ecosystem, the reliability of crypto pricing, the strength of the arbitrage function in crypto and the robustness of crypto custody.”
The press release further states that Bitwise Organization in collaboration with Bitwise Investment Advisers will be the sponsor of the proposed ETF. They would bring in rich baggage of experience and expertise in ETFs. Bitwise has also paid special attention to the issues of issues of custody, trading, pricing, liquidity, and reporting while developing these private funds. These were the main areas of concern that the U.S. SEC had discussed in the recently published guidance stemming from regulatory proceedings.
In December last year, Bitwise introduced two new crypto funds in the market owing to increased client demand. The company said that the launch of two new products was on the back of increased client demand for a crypto specific fund and also investor dissatisfaction with existing options.
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