On February 2, crypto asset manager Bitwise Asset Management announced that it had filed a Form 211 with the U.S. Financial Industry Regulatory Authority (FINRA). If the proposal is approved, Bitwise will be able to use its shares publicly through over-the-counter (OTC) counters and secondary markets.
Bitwise plans to compete with Grayscale’s Bitcoin Trust
Popular cryptocurrency index fund provider Bitwise Asset Management is hoping to get regulatory approval from US financial regulators to publicly list the Bitwise Bitcoin Fund in the OTC markets. If the Bitwise Bitcoin Fund (BBF) is approved, it will follow the public listing of the company’s Bitwise 10 Crypto Index Fund, which recently received regulatory approval.
The BBF is traded on the OTCQX Best Market and Bitwise has not yet selected a ticker for the fund. Bitwise President Teddy Fusaro said during the announcement that the fund has been under management since 2018 and the company is looking forward to a public listing of OTCQX.
“We are extremely excited to launch the Bitwise Bitcoin Fund, which the Bitwise 10 Crypto Index Fund (OTCQX: BITW) recently embarked on,” said Fusaro. “We have been managing this fund since 2018 and offer investors an inexpensive, convenient and secure means of obtaining exposure to Bitcoin. We are pleased that shares in the fund may be listed on the OTCQX,” added the President of the Crypto Asset Manager .
Bitwise Chief Investment Officer: “The interest of professional investors in access to Bitcoin is growing significantly.”
The Bitwise Bitcoin Fund will compete with Grayscale, a fund manager who has set up numerous trusts that are sold in OTC markets. Grayscale also has a fund similar to Bitwise’s 10 Crypto Index Fund called the Large Digital Cap Fund.
Both firms recently removed the crypto-asset XRP from these two specific funds that hold a basket of digital currencies. While Grayscale had the opportunity to make the fund available to a wider audience, Bitwise had to hold the BBF solely for private placements by accredited investors.
“The interest of professional investors in access to Bitcoin as a tool to hedge their portfolios against rising inflation risks is growing significantly,” added Matt Hougan, Bitwise chief investment officer. “Financial advisors in particular are taking note of the large allocations that hedge funds, institutions, insurance companies and traditional asset managers are making to Bitcoin. Based on our recent survey of nearly 1,000 financial advisors, many decide this is now the time to consider your own allocation. “
Meanwhile, exchange-traded bonds and trusts like Grayscale have been the only publicly available investment vehicles that allow investors to get exposure to Bitcoin and other digital assets. People are hoping that the US Securities and Exchange Commission will approve a Bitcoin Exchange Traded Fund (ETF) in 2021.
A number of crypto proponents believe an ETF will be approved this year as firms like Valkyrie Digital Assets and Vaneck battle for approval.
What do you think of the Bitwise Bitcoin Fund, which is applying to FINRA for inclusion in the OTCQX Best Market? Let us know what you think in the comments section below.
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10 Crypto Index Fund, approval, Bitcoin, Bitcoin (BTC), Bitwise, Bitwise Bitcoin Fund, Bitwise Fund, BTC, ETF, etn, finra, grayscale, grayscale Bitcoin Trust, Large Digital Cap Fund, OTC, OTCQX, regulations, Trusts
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