Bitwise Asset Management Seeks Approval for New Bitcoin ETF

Bitwise Takes a Bold Step

In an exciting move for the cryptocurrency landscape, Bitwise Asset Management has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to launch a new Bitcoin Exchange Traded Fund (ETF). This announcement, made public today, January 10, showcases the firm’s determination to innovate in the ever-evolving digital asset arena.

The Bitwise Bitcoin Total Return Index: What’s Different?

The proposed ETF aims to track the Bitwise Bitcoin Total Return Index, which calculates its value from bitcoin prices gathered across multiple cryptocurrency exchanges. This approach sets it apart from previous ETF proposals, which often relied on limited sources for price data. By drawing from a broader spectrum of exchanges, Bitwise hopes to create a more comprehensive representation of the market.

Safety First: Regulated Custodians

A significant highlight of Bitwise’s proposal is its commitment to using regulated third-party custodians for holding the physical bitcoin assets. John Hyland, Bitwise’s Global Head of ETFs, emphasized the importance of this practice, remarking, “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.” This reinforces investor confidence and addresses long-standing concerns regarding asset security in the crypto space.

ETFs: What’s the Big Deal?

For those scratching their heads about what an ETF actually is, let’s break it down! An ETF is a type of security that tracks an asset or a group of assets, allowing investors to trade them on an exchange like they would with traditional stocks. The crypto industry is buzzing with hope for the approval of a Bitcoin or crypto ETF by U.S. regulators, as this could pave the way for broader institutional adoption of digital currencies.

The Waiting Game with U.S. Regulators

As anticipation builds, firms have been on the edge of their seats awaiting SEC decisions on various crypto ETF applications. In a recent move, the SEC postponed its decision on a Bitcoin ETF from investment firm VanEck and blockchain company SolidX, pushing the deadline to February 27, 2019. Amid this uncertainty, one SEC commissioner candidly advised audiences at the Digital Asset Investment Forum not to hold their breath for these approvals. Looks like patience is the name of the game!