On April 9, 2021, the Delaware-based company and sponsor of the “Kryptoin Bitcoin ETF Trust” filed an S1 amendment for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The asset manager resubmitted its 2019 ETF application and instead of leveraging NYSE, the company plans to use Cboe BZX.
Cryptoin joins the list of Bitcoin ETFs hoping for approval in 2021
The race for a bitcoin exchange-traded fund (ETF) in the United States has become thick with competition over the past few days. Asset manager Kryptoin recently revealed that he has resubmitted to the SEC to get an ETF approved. With Kryptoin participating in the competition, there is now seven Bitcoin-based ETFs hope to be approved by the U.S. regulator. The list includes Valkyrie, Vaneck, Fidelity, NYDIG, Wisdomtree, First Trust & Skybridge and Kryptoin.
Kryptoin’s prospectus does not differ much from the 2019 submission, except at that time he chose to list on NYSE Arca. This time, Kryptoin sent the prospectus to the SEC on Friday, designating Cboe BZX as the stock exchange. Kryptoin has decided to add its prospectus to the list of bitcoin ETF submissions, while both Vaneck and Wisdomtree are acting for the SEC review. The company’s product is called the “Kryptoin Bitcoin ETF Trust”, and the company would like to launch as soon as it is permissible.
In the preliminary prospectus, which is subject to completion, it is further noted that ‘the objective is to provide exposure to bitcoin at a price that reflects the actual bitcoin market where investors can buy and sell bitcoin, minus the expenses of the Trust’s operations. ‘ Kryptoin adds that the company will use a reference rate to determine the value of shares.
The SEC filing reads:
In pursuit of its investment objective, the Trust will hold bitcoin, and in an effort to ensure that the price of the Trust’s shares reflects the actual bitcoin market, the Trust will value its shares on a daily basis as determined by the CF Bitcoin US Settlement Price.
Kryptoin CEO has experience with the SPDR Gold Shares ETF
There are already two North American bitcoin-based ETFs in Canada, and a few weeks ago in South America, Brazil also launched its first bitcoin ETF. The United States has not yet allowed a bitcoin ETF, as the SEC has denied enough and many have withdrawn their preliminary submission. The SEC has cited issues such as price manipulation, but because a lot of institutional money has jumped into the crypto-ecosystem, many businesses are hoping for 2021 approval.
Kryptoin’s ETF is led by Jason Toussaint, a businessman with extensive experience in ETFs. Toussaint was previously the CEO of World Gold Trust Services, a sponsor of SPDR Gold Shares ETF (GLD). Toussaint, CEO and board member of Kryptoin, has also worked with ETFs and other investments with Morgan Stanley, Northern Trust Asset Management and JP Morgan Asset Management.
What do you think of Kryptoin’s bitcoin ETF submission and the other ETFs awaiting approval? Let us know what you think of this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for information only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly responsible for any damage or loss caused or claimed to have been caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.