Bitwise has created the Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) to give long-term investors a way to invest in bitcoin in a regulated way (BTC). The US Securities and Exchange Commission (SEC) has not approved spot bitcoin ETFs.
Bitwise, one of the world’s largest crypto asset managers, has just released a new type of bitcoin futures ETF called the Bitwise Bitcoin Strategy Optimum Roll ETF. This comes just four months after the company said it wanted to expand its fund offerings and put together a team of industry experts led by Jeffrey Park (BITC).
According to a press release from the company, the BITC strategy “invests selectively in bitcoin futures across the entire futures curve” to help long-term investors deal with the adverse effects of contango. The strategy is based on decades of research into how to price commodities.
When the futures price of a good is higher than its spot price, this is called contango. Investors in commodity ETFs usually lose money because of this.
Bitwise has clarified that its new BITC ETF will give investors regulated, professionally managed exposure to bitcoin with less price inefficiency than BTC-linked ETFs based on front-month or near-month futures contracts.
US regulators are still worried about the spot bitcoin ETF
In recent years, regulators in countries like Canada, Australia, and others have given the go-ahead to launch spot bitcoin ETFs. However, the US is still behind in this area, as the Securities and Exchange Commission (SEC) has not yet given the go-ahead for any spot bitcoin ETF filing in the region, despite efforts by well-known market players like Ark Investment Management, VanEck, Grayscale, WisdomTree, and others.
The feared regulator is often criticized for how harshly it regulates crypto. Last year, the number of enforcement actions taken against crypto market participants increased by 50%.
Crypto. News reported in January that Grayscale was upset that the SEC wouldn’t let it turn its Grayscale Bitcoin Trust into a spot ETF. The company called the SEC’s decision “illogical.”
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