Crypto asset manager Bitwise plans to publicly trade its Bitcoin fund on over-the-counter (OTC) and secondary markets
Bitwise Asset Management announced yesterday that it filed a Form 211 with the U.S. financial industry regulator FINRA. The crypto asset manager seeks permission to publicly list shares of its Bitwise Bitcoin Fund on over-the-counter (OTC) and secondary markets.
The firm aims to obtain regulatory approval to list the Bitwise Bitcoin Fund on an OTC market. If approved, the fund (BBF) would trade on the OTCQX Best Market. Bitwise still needs to select a ticker symbol for the Bitcoin Fund.
Teddy Fusaro, Bitwise’s CEO, said the firm is enthusiastic about following the same path taken by the Bitwise 10 Crypto Index Fund (OTCQX: BITW), which recently received regulatory approval.
“We have managed this fund since 2018, offering investors a cost-effective, convenient, and secure way to gain exposure to the Bitcoin market, and we are excited about the potential for the fund’s shares to be listed on OTCQX,” he added.
The Bitwise Bitcoin Fund has been open to private placements since December 2018, but only accredited investors have been eligible to participate. The fund carries a 1.5% expense ratio, which covers custody, taxes, accounting, and management fees.
Interest from professional investors is rising
Matt Hougan, Chief Investment Officer at Bitwise, said the move responds to growing interest from professional investors in Bitcoin. These investors are seeking Bitcoin exposure to hedge portfolios and protect wealth against rising inflation.
“Financial advisors, in particular, are taking note of the sizable allocations hedge funds, institutions, insurance companies, and traditional asset managers are dedicating to Bitcoin,” Matt said.
He added that many financial advisors now believe it is time to allocate a portion of client portfolios to Bitcoin.
If approved, the Bitwise Bitcoin Fund would compete with Grayscale, the industry’s largest fund manager. Grayscale operates multiple trusts whose shares currently trade on OTC markets, giving financial institutions exposure to Bitcoin and several other cryptocurrencies.
Grayscale’s funds are already available on OTC markets, making them accessible to a wider investor base, while Bitwise’s offering has been limited to private placements until now.
Translated by Carolane de Palmas