Crypto-asset management company Bitwise Asset Management has filed an application with FINRA to publicly trade shares of its Bitwise Bitcoin Fund on the OTC market.
Bitwise has filed an application with the Financial Institutions Regulatory Agency (FINRA) regarding the Bitwise Bitcoin Fund. The company aims to compete with investment products Grayscale Investments and Galaxy Digital and plans to publicly trade its stocks on the OTCQX market in New York. Fidelity Investments will oversee the custody of the fund’s assets.
The OTCQX over-the-counter market is intended for both US and international companies that must meet stringent financial standards. If approved by FINRA, Bitwise shares will be available for trading on traditional brokerage accounts and may be held by traditional custodians.
“There has been a significant increase in professional investor interest in Bitcoin as a hedging tool for portfolios against rising inflationary risks,” said Matt Hougan, investment director at Bitwise.
He added that more and more financial advisors are “taking note” of the large allocations in bitcoin by hedge funds, institutions and insurance companies, and can start investing in the crypto asset themselves.
Bitwise said the fund offers a 1.5% expense ratio – lower than Grayscale Bitcoin Trust (2.0%). If approved, the Bitwise Bitcoin Fund will become the company’s second publicly traded over-the-counter fund. As a reminder, in December, the company opened access to the purchase of shares of the Bitwise 10 Crypto Index Fund through the OTC Markets Group OTC marketplace.
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