US crypto fund manager Bitwise has become the latest firm to apply to the US regulator for approval for its bitcoin ETF.
The firm, which has more than $1.3 billion in assets under management, has partnered with US-based ETF Series Solutions for the Bitwise Bitcoin Strategy ETF which will invest in bitcoin futures along with other instruments.
An application was filed with the Securities and Exchanges Commission (SEC) on Tuesday.
While the fund will not invest directly in bitcoin, it will obtain exposure to bitcoin primarily through indirect investments in standardised, cash-settled bitcoin futures contracts and Canadian-listed funds that provide exposure to bitcoin, according to the filing.
Bitwise joins a long list of applicants, including Fidelity Investments, given that the SEC has yet to approve a crypto ETF, despite the fact that Canada has approved a number of bitcoin ETFs.
Should the SEC issue a licence, it is likely to lead to a considerable increase in the amount of institutional capital invested in cryptocurrencies.
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