Bitwise looks to succeed where Winklevoss bros. failed
The company is hoping the SEC likes its proposal for a crypto ETF
The Winklevoss brothers have tried at least four times to get the Securities and Exchange Commission (SEC) to agree to a cryptocurrency-based exchange-traded fund (ETF). All four times, the founders of the Gemini crypto exchange failed. VanEck, in a partnership with SolidX, also attempted to introduce its own version of an ETF that initially failed until the SEC reconsidered and said it would take a closer look. Now, a new crypto startup is hoping it can succeed where others have failed and has registered with the SEC to introduce yet another ETF.
Bitwise Asset Management submitted paperwork to the SEC for its Bitwise Bitcoin ETF Trust. The fund would follow the Bitwise Bitcoin Total Return Index, which the company uses to measure the value of Bitcoin (BTC) along with any “meaningful hard forks.” If approved, it would be added to the NYSE Arca, an off-shoot of the NYSE that focuses on non-large-cap stocks.
The company believes that it has a more solid ETF product than those that have previously sought to introduce the futures. Bitwise took the SEC’s previous rulings and tweaked its program to counter many of the commission’s concerns, including making the ETF physically-settled and not cash-settled. All of the earlier proposals were to offer cash-settled contracts.
John Hyland, the global head of ETF for Bitwise, is optimistic that the SEC will like its proposal and states, “We believe the crypto trading ecosystem has evolved in significant ways in the past year … 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.”
NYSE Arca is expected to file for the required rule-change proposal more than likely at some point next week.