- Bitwise has filed for a Bitcoin ETF with the SEC
- There is now barely a month to the deadline for the SEC’s ETF decision
Bitcoin ETFs have been long awaited
The proposed ETF would track the Bitwise Bitcoin Total Return Index. This ETF intends to set itself apart from others in the market by tracking prices from various exchanges to give a more accurate picture of BTC price points. The index itself will be calculated based on the prices of bitcoin that the Index Provider derives from bitcoin price transactions occurring on various cryptocurrency exchanges.
The ETF will work with third parties who will be responsible for holding on to the physical Bitcoins.
This, the press release said, puts the ETF alongside traditional funds that do the same thing:
“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.”
This is, however, not the first time Bitwise is filing for an ETF. In July 2018, the firm filed with the SEC for an ETF that would track the Bitwise HOLD 10 Private Index Fund. So far, no official decision has been made.
The long road to an ETF
There are few events that have been more heavily pursued and anticipated like the launch of a crypto ETF.
Many firms have filed for a crypto ETF but none had gotten approval yet.
In August 2018, nine ETF filings were rejected from firms such as Proshares and Graniteshares.
Rumors then began to spread about when the next decision regarding ETF fillings would be announced. After some delay, there was word that the decision would be announced in November which turned out to be false.
While the United States was back and forth in the issue, the firms crypto ETF in the world was launched in Switzerland. Amun AG launched the ETF on the SIX exchange and according to Hany Rashwan, the co-founder and chief executive of Amun, more ETFs will be launched worldwide.
For now, the decision on the ETF in the US has been pushed till February 2019.