U.S. asset manager aims to list cryptocurrency index fund
Reuters
Published Jul 24, 2018 01:59PM ET
U.S. asset manager aims to list cryptocurrency index fund
By Trevor Hunnicutt
NEW YORK (Reuters) - Bitwise Asset Management Inc took steps to bring a cryptocurrency exchange-traded fund to market on Tuesday, reviving a race to list a bitcoin-linked investment in the United States.
The San Francisco-based company said it has filed with the U.S. Securities and Exchange Commission for a first-of-its-kind U.S.-listed ETF that would track an index including bitcoin and nine other digital currencies.
Cryptocurrencies have grown to a market capitalization near $300 billion as a rival system for payment and exchange to currencies minted by governments.
An ETF would open investment to anyone with a brokerage account, including a range of retail and institutional investors who would not trade the currencies directly or even futures contracts based on it.
"The crypto market is significant," said Matt Hougan, global head of research for Bitwise. "It's too big for people to ignore."
Prospects for a bitcoin ETF seemed to dim in January when a top SEC staffer told the fund industry in a public letter that the regulatory agency wants answers to a slate of investor protection concerns before endorsing what were then more than a dozen proposed products based on cryptocurrencies.
Some of the bitcoin ETF proposals were withdrawn around that time, but at least four still await an up-or-down decision from the SEC, including a recent application that drew more than 100 comment letters from the public.
Bitcoin had already risen above $8,300 on Tuesday to its highest level in two months, with markets citing hope for a cryptocurrency ETF. The asset has declined sharply from above $17,000 earlier this year.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.