by Rushali 
Bitwise Asset Management, a provider of cryptocurrency index funds, wants to publicly trade shares of its bitcoin fund on an over-the-counter (OTC) marketplace, for that they are seeking regulatory approval.
The company has filed a 211 form with the U.S.’s Financial Industry Regulatory Authority (FINRA) for the Bitwise Bitcoin Fund, according to the press release of Tuesday.
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The firm’s aim is to compete with bitcoin investment vehicles from companies like Grayscale Investments and Galaxy Digital, and they also plan to publically trade their shares of the fund on the New York-based OTCQX marketplace.
Fidelity Investments is appointed as the custodian of the fund’s bitcoin assets.
OTCQX is designed for both U.S. and international companies, which are required to meet strict financial standards to qualify for the market.
The press release also stated that: If approved by FINRA, shares in the Bitwise fund would be available for trading in traditional brokerage accounts and could be held with traditional custodians.
Bitwise’s chief investment officer, Matt Hougan said;
“There is significant growth in interest from professional investors in accessing bitcoin as a tool to hedge their portfolios against rising inflationary risk.”
He further added, increasing numbers of financial advisors are “taking note” of large allocations to bitcoin from hedge funds, institutions, and insurance companies, and may move to make their own investments.
According to Coindesk, the fund offers a 1.5% expense ratio, which is lower than Grayscale’s Bitcoin Trust (GBTC) at 2.0%.
If the fund gets the approval, then the Bitwise Bitcoin Fund will become the second Bitwise fund cleared for public quotation following the company’s successful approval for its Bitwise 10 Crypto Index Fund in December.
