Bitwise has revealed that plans are underway to allow the retail market to participate in its large-cap index service.
According to CoinDesk, Bitwise is working closely with the relevant regulatory bodies to list its Bitwise 10 Index Fund shares on OTCQX, which provides an alternative trading system and is licensed by the SEC. According to Hunter Horsley, Bitwise’s CEO, if the plans are okayed, retail investors will have a chance to trade the fund on various renowned platforms such as TD Ameritrade as well as Charles Schwab.
The firm has various steps before trading can kick-off. The firm will start with an announcement to all the shareholders and Horsley revealed that this was done on Friday. The firm will also need to publish all the public disclosures to comply with the ATS reporting rules. The firm will also need to prepare a market maker and file Form 211 as per FINRA requirements. Trading will only kick-off after the approval of Form 211 by FINRA. Horsley explained:
“We expect approval for trading in the second half of 2020. It’ll take a number of months for trading to commence.”
Horsley compared the process to that of Grayscale Investments' Bitcoin Trust offering that is currently trading on OTCQX. At the moment Grayscale has listed various shares on OTCQX such as Digital Large Cap Fund, Ethereum Classic Trust as well as Ethereum Trust.
The Bitwise 10 Index Fund is highly diversified just as the Grayscale large-cap fund. As Horsley explained, it holds assets that are representative of about 85% of the whole crypto market capitalization.
There has been a growing interest in such types of products, Horsley stated. He added that his firm has been holding about 2,000 calls every month with advisors. A recent survey revealed that about 72 percent of advisors stated that their clients have been inquiring about crypto products.
Horsley also stated that plans are underway to launch a Bitcoin exchange-traded fund in the near future.