Bitcoin Commodity Trust Fund
The New York-based asset manager Wilshire Phoenix is planning on launching a publically traded Bitcoin fund as the investment firm has recently filed an S-1 Registration Statement along with the regulator United States Securities and Exchange Commission (SEC). Last year, Wilshire attempted to introduce a Bitcoin exchange-traded fund (ETF) and now it is going to launch a publically traded Bitcoin fund.
Wilshire to launch Bitcoin Commodity Trust
The S-1 registration statement that the investment firm has filed reveals the plans of Wilshire to launch a Bitcoin Commodity Trust. With the help of this new Commodity Trust, Wilshire Phoenix aims to offer investors bitcoin (BTC) with a proposed aggregate and with a price of around $2 million.
According to the registration statement, the firm will expose bitcoin to investors in a cost-efficient and accessible manner as the statement read:
“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.”
Once the Bitcoin Commodity Trust is registered and launched, Wilshire wants its shares to be present on the OTC Markets Group for trading for the public where people can easily buy or sell these shares.
Wilshire’s Bitcoin Commodity Trust might be looking to run a competition with the Grayscale’s Bitcoin Trust (GBTC). GBTC offers high prices to customers. While on the other hand, the Bitcoin Commodity Trust of Wilshire will offer very low fees. According to the filing:
“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’).”
Fidelity Digital Assets (FDA) to Serve as the custodian of Trust
Wilshire has given the takeover of trust’s holdings to the custodian Fidelity Digital Assets (FDA) which will provide custody to the holdings of Bitcoin Commodity Trust.
On the other hand, the UMB Bank will provide its custody services to the cash. As soon as Wilshire receives green light for registration, it may soon release the launch date of the Bitcoin Commodity Trust.