Cryptocurrency news

Wilshire Phoenix has applied to launch a new bitcoin trust

Wilshire Phoenix has applied to launch a new bitcoin trust

The Wilshire Phoenix asset management company, known for applying to launch an ETF for bitcoin, sent a registration form to the SEC to create a new bitcoin trust.

Apparently, the new Wilshire Phoenix trust should compete with a similar product of Grayscale Investments, which has raised more than $ 3.5 billion. At the same time, the Grayscale trust is constantly increasing the volume of bitcoin purchases. According to researcher Kevin Rooke, an investment company buys bitcoins 1.5 times faster than they are mined after the reward is halved.

“The trust’s shares will provide investors with access to bitcoin in a way that is affordable and cost – effective, without the complex and opaque requirements associated with independently acquiring and storing bitcoins,” Wilshire Phoenix said in its filing.

Fidelity Digital Asset Services will act as the cryptocurrency custodian for the trust, and the Fiat money will be stored in UMB Bank. At the same time, Fiat funds will be insured in accordance with the requirements of the Federal Deposit insurance Corporation (FDIC), but bitcoin insurance will cover only those cases when losses exceed $100 million.

Note that the us securities and exchange Commission (SEC) has repeatedly postponed the decision on the application to launch an exchange-traded Fund (ETF) for bitcoin from Wilshire Phoenix, and at the beginning of this year, the application was rejected altogether.