BitWise Is The Latest Firm To File With SEC For Cryptocurrency ETF
BitWise Asset Management is the latest firm to apply for a cryptocurrency exchange traded fund(ETF). It will be called the HOLD 10 Cryptocurrency Index Fund and will be responsible for tracking returns on the company’s HOLD 10 index. The HOLD 10 index is a market cap weighted index of the 10 biggest cryptocurrencies that cover around 80% of the total cryptocurrency market by market cap.
While the registration statement has been filed with the U.S. Securities and Exchange Commission(SEC), it hasn’t become effective yet. Till the SEC approves this ETF, related shares cannot be sold and offer to purchase shares cannot be accepted by any of the company’s executives.
BitWise is one of the many companies that have no started to apply for ETF with the SEC. Earlier this month, the VanEck SolidX Bitcoin Trust made an application that rather than being rejected like in the past, received positive feedback and industry consultants and eventually the public was invited to give their views on it as well.
John Hyland, the global head of exchange-traded products at Bitwise, commented on this application, highlighting their difference from the other companies. He said,
We are aware that other 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 know, all of these funds plan to offer exposure to a single coin such as bitcoin or ether. That is fine, but our proposed offering is obviously different.
Matt Hougan, the Global Head of Research further explained that while BitWise will offer single currency options to investors like other firms, multiple coin bundles behave differently and therefore need as much study and exposure. He said that the company will offer both the options to its clients.
Hyland further talked about the company’s awareness about the SEC’s discussion and analysis about the status of cryptocurrency and expressed the company’s interest in engaging in discussions with the SEC about the same and what it means for BitWise as well.
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