Bitwise Asset Management, a crypto startup has recently applied for a new Bitcoin exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC) according to a registration form published on 10th Jan 2019.
According to the initial registration form filled by the company, Bitwise Bitcoin ETF would track the Bitwise Bitcoin Total Return Index, whose value is calculated depending on the prices of Bitcoin that the Index Provider derives from Bitcoin price transactions occurring on cryptocurrency exchanges.
The shares of the ETF will be listed on NYSE Arca, once it gets the approval focusing more on trading stocks and options. The company through its press release accompanying the newly filed form mentioned that since the newly proposed Bitcoin ETF will draw prices from a variety of crypto exchanges, it will make it completely different from previously proposed Bitcoin ETFs.
Apart from that, another thing that will make Bitwise Bitcoin ETF is that it would require “regulated third-party custodians to hold its physical Bitcoin.”
John Hyland, Bitwise global head of Exchange-Traded Funds in a statement mentioned that SEC may not fund the application. He further added, “We believe the crypto trading ecosystem has evolved in significant ways in the past year … Having a regulated bank or trust company hold physical assets of a fund have been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with bitcoin.”
Hyland later added, “We are optimistic that 2019 should be the year that a bitcoin ETF launches.”
The United States Securities and Exchange Commission (SEC), as of now, has only one Bitcoin ETF rule change proposal for the application filled by SolidX and VanEck in collaboration with Cboe in 2018. The decision for the proposal has been delayed quite a few times and now it is expected the final decision will be made on 27th Feb 2019.
Matt Hougan, Bitwise global head of research while commenting on the filling mentioned that the company’s proposal is informed by questions asked by the SEC in the past. He further added, “We have spent the past year researching these questions and look forward to discussing those findings with the SEC staff in connection with the filing and listing application.”
The press release from the company also explained about the NYSE Arca to file for the rule-change proposal in the coming days.