Bitwise Asset Management Proposes a New Bitcoin ETF Addressing Latest SEC Regulatory Issues
A new Bitcoin (BTC) ETF proposal has been made by the crypto startup Bitwise Asset Management. The main intention is to offer a new crypto ETF that solves and addresses the concerns that the SEC had with previous proposals.
In order to make the proposal, the company had to fill an initial registration form that formally proposes the Bitwise Bitcoin ETF Trust. Now, the U.S. Securities and Exchange Commission (SEC) would have to take a decision on whether it approves it or not.
The proposed ETF would track the Bitwise Bitcoin Total Return Index that measures the value of Bitcoin and other meaningful hard forks on the Bitcoin network. If approved, the ETF will be listed on the NYSE Arca.
As reported in a recent press release, the ETF proposed differs from previously filed ETFs. It will be relying on regulated third-party custodians that will be holding the physical bitcoin. Additionally, the index would be drawing the price from a large number of crypto exchanges.
John Hyland, Global Head of Exchange-Traded Funds for Bitwise commented:
“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.”
The SEC has marked some issues that are very important at the time of evaluating an ETF. Some of these things include the reliability of crypto pricing, the strength of the arbitrage, and the quality of the crypto trading ecosystem.
Bitwise and Bitwise Investment Advisers, LLC combine decades of expertise in ETFs after managing private funds in the Bitcoin space for around a year. Bitwise was able to address the issues of custody, trading, pricing, liquidity, and reporting. These are all things that the SEC discussed in recent guidance.
Mr. Hyland has also an extensive background in the ETF space. He was also the Chief Investment Officer of United States Commodity Funds, leading the efforts to launch the world’s first crude oil ETF and the world’s first natural gas ETF, among other products.