On February 2, Bitwise Asset Management, a crypto asset manager, announced that it had submitted Form 211 to the US Financial Industry Regulatory Agency (FINRA). If the proposal is approved, Bitwise will be able to deploy its shares publicly through the over-the-counter (OTC) counter and the secondary market.
Bitwise plans to compete with Grayscale’s Bitcoin Trust
Popular cryptocurrency index fund provider Bitwise Asset Management hopes to obtain regulatory approval from the U.S. financial regulator in order to publicly list Bitwise Bitcoin funds on the OTC market. If approved, the Bitwise Bitcoin Fund (BBF) will follow the company’s recently approved Bitwise 10 crypto index fund public offer.
BBF will be traded on the best market of OTCQX, and Bitwise has not yet selected a stock code for the fund. Bitwise President Teddy Fusaro explained in the announcement that the fund has been under management since 2018 and the company is looking forward to public quotations on OTCQX.
Fusaro said: “We are very happy to bring the Bitwise Bitcoin Fund into the Bitwise 10 Encrypted Index Fund (OTCQX: BITW) recently taken action.” The President of Crypto Asset Manager added: “We have been managing this fund since 2018. It provides investors with a cost-effective, convenient and safe way to gain investment exposure to Bitcoin, and it is great to see that the fund’s stock is quoted on OTCQX,”.
Chief Investment Officer by position: “Professional investors’ interest in acquiring Bitcoin has grown significantly”
The Bitwise Bitcoin Fund will compete with companies such as Grayscale, and the fund manager has created many trusts that are sold on the OTC market. Grayscale’s fund is similar to Bitwise’s 10 Crypto Index fund, called Large Digital Cap Fund.
Both companies have recently removed the encrypted asset XRP from these two specific funds holding a basket of digital currencies. Although Grayscale has the opportunity to deploy funds to a wider audience, Bitwise must strictly abide by BBF regulations for qualified investors to conduct private placements.
Matt Hougan, Chief Investment Officer of Bitwise, added: “Professional investors’ interest in using Bitcoin as a tool to hedge their portfolios against rising inflation risks has grown significantly.” “In particular, financial advisors noticed hedge funds, institutions, Insurance companies and traditional asset management companies have placed huge amounts of Bitcoin. According to our recent survey of nearly 1,000 financial advisers, many people think it’s time to consider their own distribution.”
At the same time, exchange-traded bills and trust funds like Grayscale are the only investment tools open to the public, allowing investors to access Bitcoin and other digital assets. It is hoped that the US Securities and Exchange Commission (SEC) will approve the Bitcoin Exchange Traded Fund (ETF) in 2021.
Many encryption proponents Believe With companies such as Valkyrie Digital Assets and Vaneck competing for approval, the ETF will be approved this year.
What do you think of the Bitcoin fund that FINRA applies to be listed on the OTCQX best market? Tell us what you think in the comments section below.
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