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ETF application for Bitwise Files by Crypto Startup
On Thursday, Bitwise Asset Management, an important cryptovalector and fund provider based in San Francisco, announced that it has submitted an application for the ETF (Bitcoin Exchange Traded Fund) with the Securities and Exchange Commission (SEC) in the United States for 2019. Bitwise , led by the fervent cryptic optimist Hunter Horsley, took on Twitter and released a press release to announce the development, which can only be considered as bullish.
Bitwise today announced the filing of an initial registration statement on Form S-1 with the United States Securities and Exchange Commission (SEC) on a newly proposed listed exchange. https://t.co/2k23ghuWss and https://t.co/tNKE4XNNni
– Bitwise (@BitwiseInvest) 10 January 2019
In the press release, the company explained that it had submitted an initial statement of registration on Form S-1 with the US regulatory authority, which outlined a physically supported Bitcoin ETF that is only at its inception. The vehicle, proposed to see the listing on the Ark of the New York Stock Exchange, will presumably follow Bitwise Bitcoin Total Return, which supposedly "captures the full value of an investment in BTC". The product, appropriately named Bitwise Bitcoin ETF, presumably will not take into account the BTC hard forks.
According to the company's statement, its product "differs" from previously archived applications, as Bitwise intends to rely on the regulated third-party custodians to hold BTC's ETF support shares. The crypto-friendly American startup also added that the index will "draw prices" from a series of major cryptocurrency exchanges, with data covering a presumed majority of BTC's trading in this nascent industry.
Considering the formulation used by the company in its press release, it is likely that Bitwise is trying to quell the SEC's problems regarding an ETF product, as the body has been openly skeptical of Bitcoin vehicles in recent memory. In the release, a number of Bitwise leads commented on this venture, which came directly from the left field.
John Hyland, the individual behind this effort, noted that while there is no guarantee that the SEC "will review and ultimately accelerate the [ETF’s] registration statement, "his company is optimistic that 2019 will see a real Bitcoin ETF going live.
Matt Hougan, head of Fintech's global research, noted that Bitwise has worked hard to ensure that its application falls under the ESA guidelines, meet regulatory authorities, search for similar products in depth, and seek solutions to concerns about liquidity, security, surveillance, custody and manipulation.
The Horsley CEO has not issued a public comment via the exit, but it is likely to be all for this venture.
2019 Hails In Newfound Bitcoin ETF Push
This latest news comes just days after Bloomberg reported that the equivalent of the Japanese SEC, the financial services agency, is examining the approval of encrypting derivatives, such as options and futures, for a light green for ETFs. According to previous sources of Ethereum World News, according to a source aware of the matter, a source told Bloomberg that the aforementioned Japanese agency is doing everything possible to "assess the interest of the industry" for this vehicle .
And while the postponement of the FSA to allow derivatives can be seen as bearish, especially considering the alleged power in the futures of physically backed Bitcoin and similar paperless instruments. However, some cynics would argue that this regulatory action could be a net positive for this sector, since tin hatchers who believe that paper futures, such as those based on the CME and CBOE, deflated the value of BTC, instead of pushing it more up .
And, even more recently, the Winklevoss Twins, the two behind the Gemini Exchange, have revealed that they still intend to launch a BTC ETF product, even after they have been denied twice spectacularly.
As John Hyland mentioned, there is a good chance that the 2019 will be the year in which cryptocurrency ETF products will be published in full-fledged markets.
Title Image courtesy of Fezbot2000 Via Unsplash
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