While it may have appeared that the season for Bitcoin ETFs had all but cooled off following a few notable losses, Delaware-based asset manager Kryptoin Investment Advisors has applied with the United States Securities and Exchange Commission to launch one.
Currently, there is still an application to be soon decided upon, by Wilshire Phoenix Fund, that made a few last-minute alterations to their offering. However, prior to this, there have been failings from Bitwise, to budge the SEC, and even VanEck pulled its application.
The application by Kryptoin Bitcoin ETF Trust is meant to be traded on the New York Stock Exchange Arca. Notably, the ETF product is designed:
“To provide exposure to bitcoin at a price that is reflective of the actual bitcoin market where investors can purchase and sell Bitcoin, less the expenses of the Trust’s operations,” the application reads.
The plan, in this case, is for the company to hold Bitcoin and value the shares of the trust according to the Chicago Mercantile Exchange Bitcoin Reference Rate. Furthermore, there will be a third-party insured custodian.
None of the proposed plans from Krypton seem to suggest a varied degree of change in the applications that have come before. However, they do have in their locker an executive who may have some experience with ETFs.
Jason Toussaint, former managing director at the World Gold Council and ex asset manager of SPDR Gold Shares, one of the largest Gold ETFs in the world, will be the head of this ETF.
Gold ETFs also had a long route to travel before they were approved. It was only in 2003 when these types of funds were first available on the market. Toussaint will have no doubt lived through this emergence of the Gold ETF and could add some valuable experience to this ongoing endeavor.
The desire for a Bitcoin ETF has long been high on the wish list for cryptocurrency enthusiasts. Many feel that this type of institutional product will usher in a new wave of financial adoption of Bitcoin. However, the SEC remains fixated on the nascent market and its teething problems.
However, with Bitcoin futures already available, and not having too much fo an effect on the price of Bitcoin, some believe the time is not right for ETFs any way. BKCM CEO Brian Kelly has said that the crypto ecosystem hardly needs a Bitcoin ETF reasoning that that Bitcoin is already available on Fidelity and TD Ameritrade, which are regulated platforms.