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Despite the fact that the brothers Winklevoss and VanEck had difficulty convincing the US Securities and Exchange Commission (SEC) to shed light on their exchange-traded funds with cryptocurrency (ETF), a new startup is not discouraged. Bitwise Asset Management is trying to introduce its ETF, positive that its version will respond appropriately to the concerns of the committee and will find regulatory approval.
In a registration form filed with the SEC, the Bitwise Bitcoin ETF Trust traced its "Bitwise Bitcoin Total Return Index", which would be used to measure the value of Bitcoin Core (BTC), as well as any "significant significant fork". The ETF could be listed on the NYSE Arca (New York Stock Exchange), a stock exchange for securities and options other than large cap stocks traded on the NYSE.
The index would be based on the valuation of the fund, providing spot prices derived from physically settled forward contracts, as opposed to contracts settled on a cash basis and to stock exchanges. The SEC has previously denied most cryptographic ETFs – although it is still considering the VanEck / SolidX application – because they were based on cash-settled contracts.
John Hyland, global head of ETF for Bitwise, said the company is "optimistic that 2019 should be the year a [BTC] The ETF launches itself. "He added:" We believe that the encryption ecosystem has evolved significantly in the last year … Having a regulated bank or trust company hold physical assets of a Fund has been the standard under the regulation of US funds over the last 80 years and we believe it is now possible with bitcoins. "
Bitwise states that the company's proposal differs from previous cryptographic ETF proposals because it would incorporate third-party custodians to store the BTC held in a trust. He also says that the index on which the ETF is based will calculate prices using data from a "large number of cryptocurrency exchanges". This will allow Bitwise to represent "the majority of the currently verifiable bitcoin trade".
The head of Bitwise's research, Matt Hougan, also states that the company's proposal was drafted based on the feedback provided by the SEC to previous ETF proposals. He explains: "We have spent the past year researching these questions and I am not looking forward to discussing these results with the SEC staff in relation to the filing and listing application."
It is expected that the NYSE Ark will present a request to change the rules in the coming days.
