WILSHIRE PHOENIX FILED WITH THE SEC TO OPEN TRADABLE BTC FUND

  • Wilshire Phoenix, a premier alternative investment banking, deal structuring and securities investment firm, just filed with the SEC for a tradeable Bitcoin fund similar to the Grayscale Bitcoin Trust.

    Investment firm Wilshire Phoenix filed an S-1 registration statement with the U.S. Securities and Exchange Commission for a publicly traded Bitcoin Fund in line with the regulations. The registration reads:

    "The Shares will provide investors with exposure to bitcoin in a manner that is accessible and cost-efficient without the uncertain and often complex requirements relating to acquiring or holding bitcoin." Wilshire’s new Bitcoin Commodity Trust is aiming to have its shares publicly available for trading on OTC Markets Group, Inc.’s OTCQX Best Marketplace. Once issued, shares of the trust will be able to be bought and sold throughout the trading day like any other publicly traded security, the filing added.

    Wilshire product backed by Bitcoin Similar to Grayscale’s Bitcoin Trust (GBTC), Wilshire’s BCT aims to bring Bitcoin trading via shares of stock on the mainstream market to the the retail public, each share being backed by Bitcoin and priced according to Bitcoin’s current going market rate.

    The value of Bitcoin held by the new BCT will be in accorance to a Bitcoin price index as listed by the Chicago Mercantile Exchange, or CME. The index tracks Bitcoin’s price across multiple industry exchanges, known as the CME CF Bitcoin Reference Rate, or BRR, the same rate which is used by the CME to cash settle its regulated Bitcoin Futures. CME, partly, uses this rate for pricing its Bitcoin futures trading products.

    Though GBTC often holds a high premium, meaning that the customers will pay considerably higher prices when compared to buying pure Bitcoin on the cryptocurrency market. This includes a notable 2% annual fee for custody. The new filing from Wilshire Phoenix proposed a lower fee of 0.9%:

    "Except for transaction costs associated with the purchase and sale of bitcoin, the Trust's primary recurring expense is expected to be the Sponsor's fee which will be determined by applying an annual rate of 90 basis points (0.90%) to the Trust's NAV (the 'Sponsor's Fee')." The fund uses Fidelity for custody Wilshire Phoenix has had a stable and well recognized relations with Coinbase for a long time, but according to this new filing, has tasked Fidelity Digital Assets with keeping the fund’s primary Bitcoin in confinement. The filing also included some other large financial institutions such as Broadridge Financial Solutions and UMB Funds.

    We have inquired Wilshire Phoenix for additional comment and, as soon as we receive a response, we'll keep You updated.

    Stay tuned!
    Aleksandar JELIC
Prev Next