Wilshire Phoenix, an investment fund, has filed with SEC for a tradable bitcoin fund similar to Grayscale Bitcoin Trust.
The investment fund has filed an S-1 registration statement with the SEC that will help it to give better terms to investors. They will be able to efficiently access and operate Bitcoin without the uncertainties of acquiring or holding bitcoin.
The investment firm intends to put its shares for public trading under the OTC Markets Group marketplace. The shares will generally operate like any other shares. They can be bought and sold on any trading day just like other public traded security would.
Bitcoin behind everything
Wilshire’s BCT will operate in the same manner as Grayscale’s Bitcoin Trust (GBTC), which will allow the public to buy Bitcoin through shares of stock on the mainstream market. It is only that Bitcoin will back each share, and its price will be according to the market rate of Bitcoin.
The value of any Bitcoin held by the firm will be under the Bitcoin price listing done by the Chicago Mercantile Exchange (CME). Usually, CME tracks the price of Bitcoin across different exchanges and comes up with an index that CME uses to settle any regulated Bitcoin Futures. CME uses that strategy to determine the price of Bitcoin futures trading products.
Wilshire pricing strategy
GBTC uses a different strategy as customers have to pay more than they would pay to buy the actual Bitcoin in the market. That is because they add a 2% annual fee as custody. Wilshire, on the other hand, only charges a fee of 0.9%. 0.9% will be the custody fee though a customer will still be required to pay for the transaction fees in the buying and selling of Bitcoin. That’s the same case with GBTC; the customer still has to pay for transaction fees.
Contrary to expectation, Wilshire will not use Coinbase for holding the fund’s underlying Bitcoin in custody but will instead use Fidelity Digital Assets. Many expected that it would use Coinbase as they have had a smooth relationship for a long time. In addition to Fidelity Digital Assets, other financial institutions will be used, such as Broadridge Financial solutions and UMB Funds.