Asset Manager with Delaware Investment Advisors Kryptoin, October 15, applied to the Commission on securities and exchange Commission (SEC) a proposal for the creation of exchange-traded Fund (ETF) for bitcoin.
Bitcoin ETF on the new York stock exchange
According to the document released by the SEC, the bitcoin ETF from Kryptoin Trust is designed for trading on the new York stock exchange Arca. In particular, the ETF product developed by:
“… To provide access to bitcoins at a price that reflects the real bitcoin market, where investors can buy and sell bitcoin, net of transaction costs trust”.
The company plans to hold bitcoin and to assess the shares of the trust in accordance with the base bid at the Chicago Mercantile exchange, THE. Cryptocurrency will be kept with the insured custodian that is also regulated by the Act on investment advisors, dated 1940.
Offer of the trust to the SEC also describes in detail what Kryptoin Trust will hold the bitcoin, “in an effort to price stock of the trust reflect the actual market of bitcoin”.
However, the trust will not buy or sell bitcoin directly and acquire it through shares, called “baskets”. The document says:
“However, when the trust will sell or redeem your shares, it will do so in kind transactions in blocks of 100,000 shares called “baskets” according to the net asset value of the trust (” NAV”). Only authorized purchasers may purchase or redeem shares through the trust and they will do this by giving bitcoins to the Trust in exchange for shares when purchasing shares. “
Another interesting detail is that the head stock of the product in Kryptoin Trust is Jason Toussaint (Jason Toussaint), the former Executive Director of the world gold Council and ex-Manager of the assets of the SPDR Gold Shares, one of the largest gold ETF in the world.
Meanwhile the race to launch the first regulated bitcoin ETF is becoming increasingly fierce.
Earlier this month, documents revealed that Wilshire Phoenix Fund has updated its own offer bitcoin ETF filed with the SEC. Also this month, the asset Manager Bitwise conjunction with NYSE Arca confirmed his intention to once again submit an application for approval of ETF bitcoin after the last deviation SEC.
Meanwhile, the well-known analyst Tom Lee (Tom Lee) of Fundstrat, the price of bitcoin is not enough liquidity:
“The price of bitcoin needs to be $150, 000 to be sufficiently liquid, to create a corresponding exchange-traded Fund ETF.”