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Different Bitcoin ETF Proposition
Bitwise Asset Management has filed an initial registration statement on Form S-1 with the US SEC.
According to the official press release, the proposed Bitwise Bitcoin ETF will be designated to track the Bitwise Bitcoin Total Return Index. It will attempt to capture the full value of an investment made in Bitcoin, including meaningful hard forks.
The release also reveals that the proposed ETF is different than the previous applications because it will rely on a regulated third-party custodian.
It’s worth noting, though, that a similar approach is used by Bakkt – the digital asset trading platform which is to be launched by the owner of the New York Stock Exchange (NYSE) – the Intercontinental Exchange (ICE).
Additionally, the index tracked by the ETF will be drawing prices from a broad number of cryptocurrency exchanges, which represent the majority of verifiable bitcoin trading up to this moment.
2019 – “The Year That a Bitcoin ETF Launches”
2018 saw quite a few bitcoin ETF applications being rejected. In August alone, the SEC denied 9 applications for Bitcoin ETFs.
One of the more marquee applications was that of popular Bitcoin proponents – Tyler and Cameron Winklevoss. Their Bitcoin ETF application was denied by the SEC in July because of concerns over offshore manipulation.
However, the Global Head of Exchange-Traded Funds for Bitwise, John Hyland, remains somewhat optimistic:
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 other Bitcoin ETF that the SEC has yet to decide on is proposed by VanEck and SolidX and it’s backed by CBOE Global Markets. The Commission should come up with a decision by February 2019.
What do you think about the new Bitcoin ETF proposed by Bitwise? Do share your thoughts in the comments below!