Industry Updates

Another asset manager joins the Bitcoin ETF bandwagon

George Geddes

a group of people standing on a sidewalk

Bitwise Asset Management is joining the likes of VanEck in its attempt to launch a Bitcoin ETF. The asset manager has filed its initial registration with the US Securities and Exchange Commission for the launch of the Bitwise Bitcoin ETF Trust.

VanEck and Solid X partnered late last year for their proposal for a Bitcoin ETF which the SEC has rejected several previous attempts. The latest news on the most recent application is still awaiting the SEC's decision having been postponed until late February.

Bitwise is a San Francisco-based crypto index provider. The company has partnered with exchanges for the launch of tokens tracking its indices and is now taking the next leap in to the exchange traded fund market.

This proposal differs to previously rejected proposals by relying on regulated third party custodians to hold the bitcoins and the index will retrieve prices from numerous leading exchanges which trade the cryptocurrency.

Whilst there is no guarantee or suggestion that this proposal is likely to be accepted, Bitwise is still confident a Bitcoin ETF will launch this year.

John Hyland, Global Head of Exchange-Traded Funds for Bitwise, said I a statement: "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."

Leading Bitwise's efforts in launching the ETF is Hyland who has years of experience in the ETF industry. He has worked for the United Stated Commodity Funds as CIO and led the company to launch the world's first crude oil ETF, according to Bitwise. Hyland is also Chairman of Inside ETFs and is co-author of the CFA Institute's monograph on ETFs.


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