Crypto asset manager Bitwise is seeking to launch an exchange-traded fund (ETF) tied to cash-settled Bitcoin futures contracts, adding its name to a growing list of hopefuls for this type of investment vehicle. ETFs are investment products that track the price of an asset or group of assets and trade like stocks on an actual exchange. Quite a handful of crypto companies have applied for bitcoin ETF, but none of them were approved by the SEC.
ETF Series Solutions teamed up with Bitwise Index Services to file a BTC ETF.
ETF Series Solutions teamed up with Bitwise Index Services, a division of the asset management firm, to file an application for a Bitcoin futures ETF with the Securities and Exchange Commission (SEC) on Tuesday, September 14. If approved, Bitwise Bitcoin Strategy ETF will not invest in Bitcoin directly. Instead, the fund seeks “to obtain exposure to Bitcoin primarily through indirect investments in standardized, cash-settled Bitcoin futures contracts traded on commodity exchanges registered with the CFTC.” US SEC has been quite hesitant in approving a Bitcoin ETF.
The SEC is yet to approve a bitcoin ETF.
Bitcoins ETF tied to the world’s largest cryptocurrency have long been on American investors’ wish list, yet the SEC is yet to approve such a product. The agency cites Bitcoin’s volatility and market manipulation risks as an excuse to deny or delay decisions or make frustrated applicants withdraw repeatedly. As of now, there are more than ten firms queuing up for the SEC to approve their applications, including the likes of VanEck, Fidelity, and SkyBridge. However, their hopes for an ETF backed by physical Bitcoin seem to be withering as the agency’s chair Gary Gensler hinted last month that he’d be more inclined to see an ETF tied to Bitcoin futures.