Bitwise Plans to Publicly Trade Its Bitcoin Fund - Seeks Verification from FINRA

Ashna  |  Feb 4, 2021

The leading cryptocurrency index funds provider Bitwise Asset Management is looking to get a regulatory framework, allowing Bitwise to trade shares of its bitcoin fund publicly on an over-the-counter (OTC) marketplace. 

Diving into the market against some of the leading bitcoin investment giants like Grayscale Investments and Galaxy Digital, Bitwise has expressed its plans to publicly trade shares of its Bitcoin Fund on OTCQX, a New York-based marketplace.

The firm issued a press release on Tuesday, stating to have filed a 211 form with the U.S. FINRA for its Bitwise Bitcoin Fund. Custodianship of the bitcoin asset in the fund would be handled by Fidelity Investments. 

Bitwise Bitcoin Fund Share on OTCQX

OTCQX sets extremely stringent standards in the market for both the U.S. and international companies to qualify their shares to trade on their marketplace. 

According to the press release, if Bitwise manages to get verified, the fund’s share will become accessible in traditional brokerage accounts. The validation would also allow the shares to be held, traditional custodian. Even though a ticker for its Bitcoin fund is not announced yet, Matt Hougan, the chief investment officer of Bitwise, went on to call out the professional investors on their interest rate. 

“There is significant growth in interest from professional investors in accessing bitcoin as a tool to hedge their portfolios against rising inflationary risk.” 

Bitwise Offers a Lower Expense Ratio than Grayscale 

Bitwise claims to offer an expense ratio of 1.5%, which is considerably lower than Grayscale’s Bitcoin Trust (GBTC) with an expense ratio of 2.0%.

Bitwise’s 10 Crypto Index Fund were recently made available to U.S. investor in December 2020. If Bitwise manages to gain approval for its Bitcoin Fund, it would become the second Bitwise fund to have cleared verification for public trading.

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