Bitwise Refiles For Physical Bitcoin ETF

October 14, 2021

Bitwise, a provider of cryptocurrency indexes and funds, has once more filed for a physical bitcoin ETF that will hold the world’s most popular cryptocurrency rather than futures on it.

The issuer also released two white papers intended to show the relationship between bitcoin spot and futures pricing and the likelihood of an exchange-traded product influencing bitcoin futures pricing.

Bitwise made its first physical bitcoin ETF filing in 2019, which was later rejected by the SEC, as were all proposals for physical bitcoin ETFs made around that time. However, the regulatory agency is set to issue decisions on futures-based bitcoin ETFs next week. Bitwise also filed for just such a product in mid-September.

 

(Bitcoin ETFs May Come Next Week)

 

The SEC’s biggest concerns around bitcoin funds have been the possibilities for fraud and manipulation in the cryptocurrency space.

Bitwise CEO Matt Hougan argues that the maturity of the bitcoin futures market should allay those concerns. In a Twitter thread, he says that a bitcoin ETF using regulated futures would give price discovery for a spot bitcoin product in the same way futures-based gold ETFs have provided price discovery for spot gold funds such as the SPDR Gold Trust (GLD).

Hougan cites his firm’s research finding that the CME-traded futures on bitcoin are the leading source of price discovery for the bitcoin market.

The filing did not include a ticker or expense ratio, but it did cite the NYSE Arca as the listing exchange for the product. It is structured as a grantor trust.

Contact Heather Bell at [email protected]

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