Bitwise Cryptocurrency ETF Next In Line To Challenge SEC Approval
Kiana Danial | Jul 25, 2018 12:49AM ET
A cryptocurrency ETF could be closer to launch than ever! For those investors who’ve patiently been waiting for an Exchange-Traded Fund, or an ETF that tracks cryptocurrencies, it is exciting to know that crypto asset management, Bitwise, has filed for one.
The San Francisco-based company is joining a growing number of financial services providers looking to launch the first ETF for cryptocurrencies.
Bitwise filed with the U.S. Securities and Exchange Commission on Tuesday for an exchange-traded fund that would track a basket of 10 cryptocurrencies, including Bitcoin.
The news could be one of the reasons behind the current cryptocurrency market surge, which got Bitcoin to surpass the $8,000 psychological level and break above the daily Ichimoku cloud.
The Bitwise ETF will track the returns of its market-cap-weighted index of the 10 largest cryptocurrencies, called the HOLD 10 Index. They are looking to serve both retail and institutional investors. Other than Bitcoin, the HOLD 10 Index currently includes Ethereum, XRP, Bitcoin Cash, Lumens, Litecoin, Dash, Zcash, Monero, and Ethereum Classic.
Although this could be an exciting news, it is important to remember that the SEC has not yet approved a cryptocurrency-based ETF. Back in 2017, the SEC rejected an application for a bitcoin-based investment vehicle by Cameron and Tyler Winklevoss, founders of the cryptocurrency exchange Gemini. In June 2018 the SEC sought public comments on an application by the CBOE for a bitcoin-based ETF, which got overwhelmingly positive comments.
But still, we’ve got no crypto ETF to bank on. Let’s cross our fingers for one of these companies to win the crypto-ETF race.
Don't forget to complete your risk management due-diligence before developing your investment strategy.
*This article was originally published
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