Bitwise Hopes Its New ETF Proposal Can Sway The SEC

January 10, 2019 11:37 PM

Will 2019 be the 12 months of a bitcoin exchange-traded fund? Bitwise hopes so.

On January 10, San Francisco-based crypto-asset fund supplier Bitwise Asset Administration introduced it had filed an initial registration statement with the US Securities and Change Fee (SEC) proposing a “bodily held” bitcoin exchange-traded fund.

Bitwise believes the newly proposed bitcoin ETF will deal with a few of the SEC’s main considerations about such a fund. The fund’s worth, for instance, is not going to be primarily based on contracts settled in money, as with beforehand proposed crypto ETFs, in line with a press release. This new ETF will as an alternative be valued primarily based on spot costs from numerous cryptocurrency exchanges “representing the vast majority of presently verifiable bitcoin buying and selling.”

Bitwise additionally says its ETF will differ from earlier proposals as a result of it’s going to make use of the companies of “third celebration custodians to carry its bodily bitcoin” as an alternative of holding funds on an alternate or in a private financial institution account.

If permitted, the ETF will likely be listed on NYSE Arca, an digital alternate for buying and selling shares and choices. Bitwise’s ETF would observe the “Bitwise Bitcoin Complete Return Index” to maintain tabs on the worth of bitcoin and any “significant arduous forks.”

John Hyland, international head of exchange-traded funds for Bitwise, hopes for swift and hearty approval from the SEC: “Whereas there might be no assurance that the … utility will likely be granted or the SEC will assessment and in the end speed up the registration assertion, we’re optimistic that 2019 needs to be the 12 months {that a} bitcoin ETF launches.”

The SEC has already denied a number of proposed bitcoin-backed ETFs, together with a proposal from the Winklevoss twins in July 2018 and bids from three completely different crypto-backed companies in August 2018. The jury remains to be out on the Chicago Board Choices Change’s proposal for a bitcoin-backed ETF, however the SEC should approve or deny that proposal by February 27.

Nathan Graham is a full-time employees author for ETHNews. He lives in Sparks, Nevada, together with his spouse, Beth, and canine, Kyia. Nathan has a ardour for brand new expertise, grant writing, and brief tales. He spends his time rafting the American River, enjoying video video games, and writing.

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