Bitwise Files With SEC for Cryptocurrency ETF

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John Hyland, the international head of exchange-traded products at Bitwise, stated, “We’re aware that additional investment firms have filed for cryptocurrency ETFs under the Securities Act of 1933, and that there continues to be interest in filing under the Investment Company Act of 1940. As best we understand, every one of these funds plan to offer exposure to a single coin such as bitcoin or even ether. That’s fine, but our suggested offering is obviously distinct. ”

A registration statement has been filed with the U.S. Securities and Exchange Commission (SEC) but has not been effective. Until the SEC determines whether to accept the ETF, related shares may not be marketed, also offers to purchase the shares can’t be accepted by any of the business ’s executives.

Published at Tue, 24 Jul 2018 23:18:10 +0000

Bitwise really isn’t the first business to test to enroll a cryptocurrency ETF application. Before this month, waves have been made when an application for a Bitcoin ETF from the VanEck SolidX Bitcoin Trust was not reversed as it was in 2017, and has been consulted with industry specialists. Following this period of time, the SEC published the application for public comment to see if general traders and consumers showed curiosity.

Bitwise Asset Management was founded in San Francisco at 2017. It launched the first cryptocurrency indicator fund in November of the year as a means of supplying accredited investors using weekly liquidity through an open-ended private placement system. Up to now, the organization has garnered institutional backing from firms like General Catalyst, Blockchain Capital and Khosla Ventures.
The application received favorable feedback, along with the SEC later announced it was working on an outline for broader, less-restrictive legislation concerning open-ended ETFs to boost innovation in the financial space.

Matt Hougan, global head of research, also clarified that while Bitwise will offer single-currency chances to investors such as other resources perform, multiple-coin baskets behave very differently and consequently warrant equally as much research and vulnerability. He says that the company plans to provide both to its clients.

Bitwise Asset Management is the latest venture to apply for a more cryptocurrency exchange-traded fund (ETF). Called the Bitwise HOLD 10 Cryptocurrency Index Fund, the ETF will track the returns of the business ’s HOLD 10 Index, a “market-cap-weighted indicator of the 10 largest cryptocurrencies” which captures approximately 80 percent of the complete cryptocurrency market capitalization.
Hyland went on to state, “We know that the present crypto ETF filings have generated a lot of analysis and discussion within the SEC relating to this emerging asset class, along with the SEC and its staff, to their credit, have asked for public comment on a broad range of issues regarding those products. We anticipate the team of the SEC has had continuing talks with all the investment firms making the crypto filings so far, and we look forward to getting our own talks with the SEC regarding the character of our proposed offering. ”