Kryptoin Investment Advisors Takes a Shot at Launching Bitcoin ETF

Kryptoin’s Bold Move

On October 15, Delaware’s very own Kryptoin Investment Advisors decided to throw its hat into the ring by applying to the SEC for a Bitcoin Exchange Traded Fund (ETF). The world of cryptocurrencies has been shaking things up, and it looks like Kryptoin wants a piece of that action on the New York Stock Exchange.

The Trust and Its Strategy

As outlined in their SEC filing, the Kryptoin Bitcoin ETF Trust aims to deliver a safe and reflective approach to Bitcoin investments. They plan to price their ETF based on the actual Bitcoin market, allowing investors to buy and sell Bitcoin with the operational expenses of the Trust taken into account. Talk about transparency!

The cryptocurrency will be held by an insured custodian, although they’re playing a bit coy about which one. This custodian is governed by the Investment Advisers Act of 1940 – so, you know, they mean business.

How It Works: The Basket System

Here’s where it gets a bit technical. Kryptoin’s Trust will not be buying or selling Bitcoin directly. Instead, it operates via something called “baskets”. When authorized purchasers want to get their hands on some shares, they’ll have to deliver Bitcoin to the Trust in exchange for these baskets of shares. Curious, right? Here’s the gist:

• Shares are managed in blocks of 100,000 called “Baskets.”
• Only Authorized Purchasers can engage with these Baskets.
• They will be redeemed based on the Trust’s Net Asset Value (NAV).

Who knew investing could sound so much like a gourmet shopping experience?

Meet the Team

Kryptoin is not playing with any amateurs here. Leading the charge is Jason Toussaint, a savvy executive who has a history with some pretty heavy-hitting names like the World Gold Council. With experience managing one of the largest Gold ETFs worldwide, you might say he brings some serious street cred to the Bitcoin party!

The Competitive Landscape

But hold on to your wallets, because Kryptoin isn’t the only player in the game. The race to be the first regulated Bitcoin ETF is heating up. Earlier this month, Wilshire Phoenix Fund made waves by updating their Bitcoin ETF proposal, while Bitwise has got plans to refile their application after receiving a recent rejection from the SEC. It’s like watching a high-stakes poker game – only with more “blockchains” and fewer poker faces!