Bitwise Plans To Float Bitcoin Fund After Regulatory Approval
The Bitcoin Fund aims to introduce a 50 BP below expense ratio and compete with other companies such as Grayscale, which have earlier gone public. Bitwise seeks license to go public with the Bitcoin Fund. Bitwise, one of the top providers of the crypto index fund, has requested the regulatory authorities’ license to allow it to go public trading bitcoin’s funds over the counter.
A statement published states yesterday that the firm has submitted some files to the concerned authorities to approve the commencement of trading the Bitwise Bitcoin Fund. The Fund aims to compete with pioneers, such as Grayscale, who had earlier gotten an authorization to publicly traded funds. Bitwise plans to list its funds on the New York Exchange with a third party overseeing the Fund’s history.
Bitwise to List Shares in Traditional Brokerage Account
For such a request to be approved, a company must first meet the regulations stipulated in OTCQX, an investment law made for US companies and foreign companies. The law requires that any company filing for such approval must comply with the stringent investment conditions in the clauses.
If the regulators grant Bitwise’s request, the company will be able to list its shares in the mainstream brokerage account, and the funds will be in the custody of mainstream custodians. As of the press time, we are still awaiting the firm’s announcement of a ticker.
Yesterday, Bitwise’s representative, Matt Hougan, remarked a renewed interest in Bitcoin from hedge funds and institutional investors to access Bitcoins as a hedging instrument against inflation and resultant effects.
Matt also stated that many finance industry professionals are keenly watching large inflows of money to Bitcoin from institutional investors. Hence, the company’s resolve to start its investment drive in the same direction.
Bitwise informed CoinDesk that the Funds’ 1.5 percent expense ratio is the lowest than its competitors that publicly listed the same, Fund. If the request is approved, Bitwise Bitcoin Funds would be the 2nd Bitwise funds to be licensed for public trading since the firm’s Bitwise 10 request was successfully approved in late 2020.
Bitwise Fund to Offer the Lowest Expenses Ratio
The firm states that the Fund aims to offer the public a relatively low-cost way of gaining access to Bitcoin in the mainstream brokerage accounts, thereby lowering its expense ratio by 50 basis points lower than that Of Grayscale is the largest Fund so far.
Bitwise’s President expressed the firm’s willingness to move the Fund forward after successfully launching and getting approval for the Bitwise 10 Fund. He added that the Fund had been under their management for two years with the sole aim of providing investors with an affordable, comfortable, and secure way of investing in bitcoin.
In December last year, the firm listed Bitwise 10’s shares publicly, starting with $120 million worth of assets. The firm was motivated by the recent activities in cryptocurrencies as more individuals and institutions joined daily.
In a statement in December, it reported a rise of 184% by the Fund, thereby surpassing Bitcoin’s growth. A committee consisting of professionals in the financial and crypto industries was set up to oversee the Index. Bitwise 10 Fund is a publicly-traded fund that employs Bitwise Fusaro as its manager.