A Securities and Exchange Commission-approved spot bitcoin exchange-traded fund would be a "major milestone" likely to bring more institutional investors into the cryptocurrency asset class, according to Matt Hougan, CIO of Bitwise Asset Management, which is seeking SEC approval for a spot bitcoin offering.
Bitwise, a crypto asset manager, is seeking SEC approval for its Bitwise Bitcoin ETP Trust, an exchange-traded product. The offering would be registered with the SEC in accordance with the Securities Act of 1933 and would not be a fund registered under the Investment Company Act of 1940, according to an Oct. 14 preliminary prospectus.
While the SEC has approved bitcoin futures ETFs, it has yet to approve a spot bitcoin ETF — one that holds actual bitcoin, Mr. Hougan said.
Bitwise, which managed $1.2 billion across its suite of investment solutions as of March 31, already works with institutional investors, Mr. Hougan said during an interview with Pensions & Investments at last week's Exchange: An ETF Experience conference in Miami. The CIO was asked whether a spot bitcoin ETF might have a role among institutional investors such as pension funds.