Bitwise Requests Approval For Bitcoin Futures ETF In The US
- Asset management firm Bitwise has submitted a request with the Securities and Exchange Commission (SEC) for the approval of a Bitcoin (BTC) futures exchange-traded fund (ETF) in the US.
- The “Bitcoin Strategy Optimum Yield ETF” would trade under the ticker BITC and would offer managed exposure to Bitcoin futures contracts traded on the Chicago Merchantile Exchange (CME) and investments in short-term debt securities.
- The filing with the SEC did not specify the amount that the fund issuer would charge in management fees.
Bitwise, an asset management firm that has made a strong presence in the space in recent years, has submitted a request with the United States Securities and Exchange Commission (SEC) for the approval of a Bitcoin (BTC) futures exchange-traded fund (ETF) in the US.
This request comes at a time when the trading volume of crypto futures and cryptocurrencies have dropped significantly and the overall investment in the industry has also dropped down by huge numbers recently following the collapse of the former multi-billion dollar crypto exchange FTX and multiple crypto lending firms as well.
According to a report from Bloomberg, Bitwise filed for the application on Wednesday, just two weeks after the implosion of FTX. The Bitcoin futures ETF from the funds issuer has been titled the “Bitcoin Strategy Optimum Yield ETF” and this ETF would trade under the ticker BITC and would offer managed exposure to Bitcoin futures contracts traded on the Chicago Merchantile Exchange (CME) and investments in short-term debt securities.
“This is as much a signal as a filing — Bitwise is telling their clients and the rest of the world that despite the dark days, Bitcoin is alive and well and they still believe in the future,” said Eric Balchunas at Bloomberg Intelligence.
The filing with the SEC did not specify the amount that the fund issuer would charge in management fees which could be a big point of debate for potential investors if the Bitwise Bitcoin futures ETF gets approval from appropriate authorities.
With the crypto space going through a troubling phase, the request for launch of a Bitcoin futures ETF when authorities are skeptical of the future of crypto and blockchain seems to be too far streched. However, Bitwise seems to be focused on the long-term effects of the product.
“BITC’s strategy, according to the filing, is designed such that instead of its futures contracts automatically rolling into the next-available contract based on a predefined schedule, it would roll into the one that ‘exhibits the highest implied roll yield under current market conditions,'” the report from Bloomberg confirms.
On the other hand, one of the most-awaited products that SEC has not approval is a Bitcoin spot ETF. Prominent crypto firms like Grayscale and WidomTree have filed for such a fund but the regulator has turned down all such requests. Following rejection from SEC, Grayscale sued the regulator.
Although the market is bearish, the CEO of Bitwise, Hunter Horsley, remains bullish on the developments taking place in the space. In an interview earlier this year, Horsley stated:
“More recently, [there’s been] a really fascinating development just in the last, I want to say nine months. There are seven private banks and broker-dealers that have put our products on their platforms for their advisors and clients to be able to get access to the space.”