Bitwise wants to launch Bitcoin ETF on NYSE Arca stock exchange

  • The company filed a corresponding application to SEC.
  • The ETF will be backed by physically held Bitcoins.

A cryptocurrency investment fund Bitwise applied to the US Securities and Exchange Commission (SEC) to get the permission for Bitcoin ETF launch. The company plans to list new instruments at the stock exchange NYSE Arca.

"Bitwise announced today the filing of an initial registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a new proposed physically held exchange-traded fund," the company said in its Twitter account.

Bitcoin-ETF developed by Bitwise will be based on Bitwise Bitcoin Total Return Index calculated by Bitwise Index Services, LLC. It is supposed to capture the full value of an investment in bitcoin, including its forks. The index sources pricing data from large and reliable trading platforms. ETF will be backed by coins physically held by regulated third-party custodians.

"The SEC has asked thoughtful and relevant questions about the quality of the crypto trading ecosystem, the reliability of crypto pricing, the strength of the arbitrage function in crypto and the robustness of crypto custody," said Matt Hougan, Global Head of Research, who oversees Bitwise's indexing efforts. "We have spent the past year researching these questions and look forward to discussing those findings with the SEC staff in connection with the filing and listing application," the company says in its press release.

It's the second time Bitwise files an application for Bitcoin ETF. In summer it submitted a set of documents for an exchange fund based on HOLD 10 index focused on ten most liquid cryptocurrencies.

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