Former Director of the World Gold Council Develops New Bitcoin ETF
Jason Toussaint, former director of the World Gold Council and portfolio manager of SPDR Gold Shares, is developing a new Bitcoin ETF with asset management firm Kryptoin Investment Advisors..
On October 15, the company filed an ETF initial registration clause with the US Securities and Exchange Commission (SEC). The fund will be pegged to the Chicago Mercantile Exchange (CME) bitcoin reference rate to determine its current price. Kryptoin Expects To Bring Its ETF To The NYSE Arca Trading Platform.
“The benefits and challenges of bitcoin as an asset class are similar to those faced by the Golden Council in bringing SPDR Gold Shares to market. There was a lot to explain to the SEC to get them fully understood and disposed to the underlying gold market, ”Toussaint said..
According to him, there are two aspects that are key to obtaining approval from the SEC, which until now has rejected all applications for launching bitcoin ETFs: agreements on the dissemination of information between the ETF provider and exchanges and clarifying the principles of the underlying market to SEC employees..
Toussaint noted that the regulator opposes the approval of Bitcoin ETFs, as at one time did not want to allow ETFs for gold to the market, since in both cases the funds are not tied to publicly quoted securities, which raises additional concerns in the context of transparency of pricing, volumes and transaction data. … At the same time, he is confident that as the spot and futures markets develop, the SEC will be more inclined to approve Bitcoin ETFs, but the process may be lengthy..
“This is not another ETF on S&P. Of course, we would like to get approval as soon as possible, but we are realistic and take into account the comments on the Bitwise application, ”he added..
On October 6, the SEC rejected Bitwise’s proposal to create a Bitcoin ETF, citing its decision in a 112-page document..