Another Issuer Is Looking To Launch A Bitcoin ETF

To this point, U.S. regulators have shown no willingness to approve exchange traded funds linked to bitcoin, but that's not stopping issuers from attempting to bring bitcoin ETFs to market.

A recent filing with the Securities and Exchange Commission indicates another issuer is looking to try its hand at bringing a bitcoin ETF to life.

What Happenend

New Yokr-based Wilshire Phoenix filed a Form S-1 filing with the SEC looking to launch the United States Bitcoin and Treasury Investment Trust.

“Wilshire Phoenix was established on November 7th 2017, with the belief that a more transparent, agile, and forward-thinking investment management firm is needed by an evolving client base,” according to the company's website.

Why It's Important

Last week, Bitwise Asset Management, a provider of cryptocurrency indexes and funds, filed plans with the SEC to launch the Bitwise Bitcoin ETF. Last year, the SEC delayed or outright rejected bitcoin ETF applications from issuers including Direxion, GraniteShares, ProShares and VanEck.

If approved, United States Bitcoin and Treasury Investment Trust's holdings would include bitcoin, U.S. dollars and short-term Treasuries. In the filing, Wilshire Phoenix cautioned that the fund, if approved, wouldn't replicate a direct investment in bitcoin.

“While the Shares are not intended to, nor is their purpose to, replicate a direct investment in bitcoin, they seek to provide investors with exposure to bitcoin with substantially lower volatility than a direct investment in bitcoin and without the uncertain and often complex requirements relating to acquiring and/or holding bitcoin,” according to the filing.

By not limiting its holdings to bitcoin, the Wilshire Phoenix product could limit some of the volatility associated with digital currencies.

What's Next

As is the case with every other proposed bitcoin ETF, the fate of the United States Bitcoin and Treasury Investment Trust lies firmly in the hands of U.S. regulators with little evidence to suggest the SEC and regulatory agencies are poised to change the established tone on bitcoin ETFs.

Not surprisingly, the Wilshire Phoenix filing doesn't include a ticker or expense ratio, hallmarks that usually indicate an ETF that has been filed for is close to launch. Bitcoin is the largest digital currency by market value.

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