It looks like the love and hype surrounding a bitcoin exchange-traded fund (ETF) hasn’t dissipated completely. A gold fund company has gone crypto and is now developing a new bitcoin ETF that’s currency being reviewed by the Securities and Exchange Commission (SEC).
Is Another Bitcoin ETF Heading Our Way?
The company bringing the ETF proposal this time around is Kryptoin, a gold-based enterprise situated in Delaware. At the head of the operation is the Jason Toussaint, the former managing director of the World Gold Council. In many ways, gold and bitcoin truly go hand in hand. For one thing, they are both assets designed to prevent the loss of one’s wealth and net worth during economic strife. In addition, bitcoin is often playfully referred to as “digital gold.”
The ETF process would work as follows: the fund being developed would track the CME CF bitcoin reference rate over the next two years. This rate would reflect bitcoin’s actual market price, and the fund would trade bitcoin contracts based on the data earned. While executives are not disclosing the fees related to the fund, they did mention that managers’ fees would ultimately be collected in BTC.
Toussaint, who head’s Kryptoin’s exchange-traded products, explained in a statement:
The benefits and challenges, when it comes to bitcoin as an asset class, are similar with what they were when the Gold Council brought SPDR Gold Shares to the market. There was also a lot of learning the SEC had to go through to fully understand and gain a level of comfort with the underlined gold market.
These past two months have been rough for bitcoin ETF proposals. Van Eck Solid X, a joint venture that had been working to get a bitcoin ETF approved since March of 2017, ultimately pulled the plug on its own application in early September after numerous delays and setbacks. While the application was still under consideration, it can be argued that the company no longer saw the point and felt the plan would receive another rejection slip.
Bitwise later became enthusiasts’ final option for a bitcoin exchange-traded fund, but that proposal was rejected as well. As it stands, major companies have seemingly exited the space, but it looks like Kryptoin is bringing the love for bitcoin ETFs back to the playing field.
Will Approval Come This Time Around?
Toussaint further comments:
The biggest factor, in my mind, is the information-sharing agreement between the ETFs and underlying exchanges… This is not another S&P ETF. We are in this [process] for the long haul. Of course, we want to get it approved as soon as possible, but the firm is realistic in terms of its expectations given the recent comments through the Bitwise bitcoin ETF order.