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Crypto asset manager Bitwise, the creator of one of the world’s first privately-offered cryptocurrency index funds, is again trying its hand at getting a Bitcoin (BTC) exchange-traded fund approved by the SEC.
Bitwise announced today the filing of an initial registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a new proposed physically held exchange-traded fund. https://t.co/2k23ghuWss and https://t.co/tNKE4XNNni
— Bitwise (@BitwiseInvest) January 10, 2019
According to a press release Thursday, the proposed Bitwise Bitcoin ETF would track the Bitwise Bitcoin Total Return Index, which includes Bitcoin and any “meaningful” hard forks.
This ETF notably differs from all previously filed Bitcoin ETFs as it would rely on regulated third-party custodians to hold its physical Bitcoin and would pull price data from a large number of crypto exchanges, as to reduce the potential for price manipulation.
“The SEC has asked thoughtful and relevant questions about the quality of the crypto trading ecosystem, the reliability of crypto pricing, the strength of the arbitrage function in crypto and the robustness of crypto custody,” said Matt Hougan, who oversees Bitwise’s indexing efforts. “We have spent the past year researching these questions and look forward to discussing those findings with the SEC staff in connection with the filing and listing application.”
The SEC’s ongoing reluctance to list a Bitcoin trading vehicle has rubbed some in the crypto community the wrong way.
As we previously reported, Gabor Gurbacs, a director and digital asset strategist at VanEck, wasn’t happy with the SEC’s latest decision to extend the review period for the VanEck/SolidX Bitcoin ETF to February 27. He went as far as calling out the apparent double standard exists between retail and institutional investors, as platforms like Coinbase and Binance regularly list assets that are far more manipulated than Bitcoin.
There is currently no timeline for a final decision on the newest Bitcoin ETF proposal, but its clear that Bitwise feels this has the best shot at approval to date.