Bitwise Asset Management, a firm that serves as a crypto index fund provider has filed a request with the US SEC to be able to launch a Bitcoin ETF.
The United States Securities and Exchange Commission (SEC) is not exactly known to be too charitable when it comes to doling out Bitcoin ETF permits and we must wait and watch how it deals with the registration form published on 10th January, 2019.
An ETF is an exchange traded fund and as the form filed by the company suggests, the proposed ETF will attempt to track the Bitwise Bitcoin Total Return Index. What is this index really? According to Bitwise, it is a value that is “calculated based on the prices of bitcoin that the Index Provider derives from bitcoin price transactions occurring on cryptocurrency exchanges.
We know that the SEC office has seen several notable Bitcoin ETF applications before but the press release accompanying the Bitwise application promises that theirs is unique.
They claim that their distinctive style lies in the fact that it picks up the Bitcoin price from not one, but several of the top cryptocurrency exchanges, so that the diverse potential of the market is reflected better in the resultant index.
Another crucial feature that sets Bitwise’s proposed ETF apart is that it will be requiring all third party holders to actually own and hold their Bitcoin physically.
In the press release that was issued from the end of Bitwise Asset Management, its Global Head of ETFs John Hyland said :
“Having a regulated bank or trust company hold physical assets of a fund has been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with Bitcoin.”
In the earlier part of last year, Bitwise had applied to the SEC hoping to launch their offering Bitwise HOLD 10 Private Index Fund, a crypto basket with ten crypto coins. Till date, the SEC has not given a verdict on the same.
The crypto world has waited with bated breath for rather long to see if SEC approves a Bitcoin ETF or not, especially given that so many applications have come in so long ago already.
The Winklevoss Brothers, VanEck and more have filed with the SEC hoping to launch their very own Bitcoin ETF. However, a green light has not been forthcoming from the end of the SEC. Will the unique application from Bitwise change the game? We have to wait and watch.