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Wilshire Phoenix applies to the SEC for approval of a public investment fund supported by Bitcoin

June 14, 2020

The alternative investment company Wilshire Phoenix has introduced an S-1 registration declaration before the United States Securities and Exchange Commission or SEC, for a publicly traded Bitcoin fundin accordance with the regulations. The record says:

“The shares provide investors with access to Bitcoin in an accessible and profitable manner, without the uncertain and often complex requirements associated with buying or owning Bitcoin.”

The new Bitcoin commodity trust Wilshire’s goal is to make its shares available Public Marketing on OTCQX Best Marketplace from OTC Markets Group, Inc. Once issued, the Trust shares can be bought and sold like any other publicly traded security throughout the trading day.

Wilshire product with Bitcoin support

Similar to the Grayscale Bitcoin Trust (GBTC), Wilshire BCT aims to enable retailers to buy Bitcoin via stocks in the main market, each bitcoin share and at the price of bitcoin being covered according to the market price.

Wilshire Phoenix applies to the SEC for approval of a public investment fund supported by BitcoinWilshire Phoenix applies to the SEC for approval of a public investment fund supported by Bitcoin

BCT’s Bitcoin value follows a Bitcoin price index listed on the Chicago Mercantile Exchange (CME). Known as CME CF Bitcoin Reference Rate or BRRThe index tracks the price of Bitcoin across multiple industry exchanges. This is the same rate that the CME uses to pay off its regulated Bitcoin futures. CME partially uses the rate to set the prices of its Bitcoin futures trading products.

However, GBTC often has a high premiumThis means that customers pay significantly higher prices compared to buying real Bitcoin in the crypto market. This includes an annual custody fee of 2%. Wilshire Phoenix’s new application proposes a lower rate of 0.9%::

“Except for the transaction costs associated with buying and selling Bitcoin, the main cost of the trust is expected to be the sponsorship fee, which is determined by applying an annual rate of 90 basis points (0.90%) to the net asset value of Trust (the “Sponsorship Fee”) “.

The fund uses Fidelity for safekeeping

Wilshire Phoenix has had a well-known relationship with Coinbase for many years, but after this new record has commissioned Fidelity Digital Assets to keep the underlying Bitcoin fund in custody. Other large financial institutions such as Broadridge Financial Solutions and UMB Funds were also mentioned in the application.

Cointelegraph has asked Wilshire Phoenix for further comments and will post updates as soon as we get a response.

UPDATE 12/6/20 UTC 9:40 PM: This article has been updated with additional information.

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