New Bitcoin ETF Proposal Filed With SEC by Gold Fund Veteran

New Bitcoin ETF Proposal Filed With SEC by Gold Fund Veteran

Delaware-based asset manager Kryptoin Investment Advisors applied with the United States Securities and Exchange Commission (SEC) to launch a Bitcoin (BTC) Exchange Traded Fund (ETF) on Oct. 15.
A ETF on the New York Stock Exchange
According to the filing document published by the SEC, the Kryptoin ETF Trust is meant to be traded on the New York Stock Exchange Arca. Notably, the ETF product is designed:
“[…] To provide exposure to at a price that is reflective of the actual bitcoin market where investors can purchase and sell Bitcoin, less the expenses of the Trust’s operations.”
The company plans to hold and value the shares of the trust according to the Chicago Mercantile Exchange Bitcoin Reference Rate. The will be held at an unspecified third-party insured custodian that is also regulated under the Investment Advisers Act of 1940.
The SEC filing also details that the Trust will hold Bitcoin “in seeking to ensure that the price of the Trust’s shares is reflective of the actual market.”
However, the Trust will not purchase or sell directly but will acquire it via shares called “baskets.” The report continues: 
“Instead, when it sells or redeems its Shares, it will do so in ‘in-kind’ transactions in blocks of 100,000 Shares called ‘Baskets’ at the Trust’s net asset value (‘NAV’). Only Authorized Purchasers may purchase or redeem Shares with the Trust, and they will do so by delivering to the Trust in exchange for Shares when they purchase Shares.”
A notable executive
Another notable detail is that the head of exchange-traded product at Kryptoin is Jason Toussaint, former managing director at the World Gold Council and ex asset manager of SPDR Gold Shares, one of the largest Gold ETFs in the world.
Meanwhile, the race to launch the first regulated ETF is becoming increasingly competitive. 
Earlier this month, documents revealed that the Wilshire Phoenix Fund has updated its own ETF proposal filed with the SEC. Also this month, asset manager Bitwise alongside NYSE Arca confirmed the intention to refile their application for a Bitcoin ETF after the latest SEC rejection.

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