Bitwise Asset Management, a leading provider of cryptocurrency index funds, has filed Form 19b-4 with the US Securities and Exchange Commission (SEC) for approval of a spot Bitcoin exchange-traded fund (ETF) on the New York Stock Exchange (NYSE).
The Bitwise Bitcoin ETF will track BTC performance as measured by the Bitwise BTC Spot Index, which reflects the actual BTC price on various crypto exchanges. The fund will hold BTC directly and use a regulated third-party custodian to store assets.
Bitwise has become the second company to file a spot BTC ETF this month, after BlackRock, the world's largest asset manager, who filed on June 15. Both firms are hoping to get the green light from the SEC, which has so far rejected or delayed every bid for a Bitcoin ETF in the US.
A spot BTC ETF will give investors exposure to the BTC price without having to buy or store BTCs themselves. It will also provide greater transparency, liquidity and regulatory oversight compared to existing products such as over-the-counter trusts or funds.
The Spot Bitcoin ETF is different from the futures-based BTC ETF, which tracks the price of BTC futures contracts instead of actual cryptocurrency. A futures-based BTC ETF has higher fees, lower liquidity, and potential tracking errors compared to a spot BTC ETF.
*Not investment advice.