Bitwise Asset Management, a leading provider of crypto-asset index and beta funds, announced today that it has proposed a new bitcoin exchange-traded fund (ETF) that it says would address the regulatory concerns that doomed previous attempts.
According to a Bitwise-issued statement, the proposed ETF differs from previously filed ETFs in that it will rely on regulated third-party custodians to hold physical Bitcoin. The index, the statement adds, will also draw prices from “a large number” of cryptocurrency exchanges.
In the firm’s press release, John Hyland, Global Head of ETFs at Bitwise declared:
“Having a regulated bank or trust company hold physical assets of a fund have been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with Bitcoin.”
John Hyland, is optimistic 2019 will be the year that a Bitcoin ETF launches. "We believe the crypto trading ecosystem has evolved in significant ways in the past year", Hyland says in a statement. "Having a regulated bank or trust company hold physical assets of a fund have been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with Bitcoin."
The bitcoin ETF has been a long-awaited darling of the cryptocurrency world, and a derivative some think could propel the market out of the doldrums and into bullish territory. Still, the SEC has pushed back on all bitcoin ETF applications thus far, citing concerns of manipulation in the underlying spot market.