A year after the Bitcoin exchange-traded fund (ETF) attempt, Wilshire files for a new Bitcoin Commodity Trust.
It was only last year when Wilshire Phoenix attempts to launch a Bitcoin exchange-traded fund (ETF). Last Friday, the asset manager files with SEC a new Bitcoin Commodity Trust.
According to the Securities and Exchange Commission (SEC), Wilshire filed an S1 registration for the new BCT. It is his plan to make cryptocurrency assets accessible to investors. Phoenix is offering bitcoin for a price of $25 or 80,000 shares to investors.
In the filed S1 registration of Wilshire Phoenix, it says:
Wilshire aims to make the new Bitcoin Commodity Trust shares accessible to public trading on OTCQX Best Marketplace managed by the OTC Markets Group, Inc. Furthermore, after the registration approval, trust shares will be available to buy and sell throughout the trading day, similar to publicly traded security.
Bitcoin supports Wilshire products
Wilshire Bitcoin Trust aims to have the same platform with Grayscale Bitcoin Trust. The company aims to permit the public to purchase Bitcoin shares on the mainstream stock market. Each share is supported by Bitcoin, and the price is in accordance with the uprising market rate of Bitcoin.
The Bitcoin values of the proposed Bitcoin Commodity Trust follow the Bitcoin price index prepared by the Chicago Mercantile Exchange (CME). The CME monitors the price index of Bitcoin through multiple industry exchanges. More so, it uses the same rate for cash settlement of the regulated Bitcoin Futures. Lastly, CME uses the rate to price Bitcoin’s future trading products.
However, Grayscale Bitcoin Trust less likely to experience a high premium. Their consumers pay higher prices in comparison to buying actual Bitcoin in the crypto market. It includes an annual fee of 2% for custody. Meanwhile, Wilshire proposed to lower the custody fee of 0.39%.
The S1 registration states:
Furthermore, the trust movement seems to compete with the $3.6 billion Bitcoin trust of Grayscale Investment. However, last year, Grayscale applied to turn into an SEC company.
FDIC in-charge of the fund
In the S1 registration, Phoenix appointed the Fidelity Digital Asset Services as the Bitcoin custodian of the trust. Meanwhile, the United Missouri Bancshares (UMB) Bank is the cash custodian.
More so, the trust will have cash holding under the FDIC insurance. Meanwhile, the Bitcoin is insured against theft in excess of $100 million.
Each business day at 4 pm in Eastern time, the administrator calculates the trust value. Trust value is derived by multiplying the Bitcoin price by the number of coins held. Bitcoin prices are based on the index of CME.
Meanwhile, Wilshire Phoenix is a well-known crypto domain for his attempt to launch a bitcoin ETF. He put hope that he would succeed in the aspect where other companies have failed. However, earlier this year, SEC rejected his proposal. The idea behind crypto ETF is to make Bitcoin more accessible to a wider scope of investors who are comfortable in investing directly in Bitcoin.
Wilshire is now filing another way to fulfill his platform.
Unfortunately, the representative of Wilshire Phoenix did not make any remarks about the news.