June 25, 2021

Crypto Asset Manager Kryptoin Re-Files for a Bitcoin ETF

2 min read

Earlier recently, Delaware-based investment advisory firm Kryptoin refiled for a Bitcoin exchange-traded fund (ETF) with the U.S. Securities Exchange Commission. The possession management firm filed its first ETF application back in 2019 without much success.

However, as institutional interest continues to increase and other countries greenlight crypto-based monetary items, the likelihood of approval appears to be high.

Kryptoin Among Eight Other Firms to File for Bitcoin-based Exchange Traded Funds

The current mainstream introduction of the cryptocurrency area has caused significant possession managers scrambling to gain market share. Among Kryptoin, significant names such as Fidelity, Wisdomtree, and NYDIG have likewise declared Bitcoin-based ETFs.

Recently, GrayScale has likewise hinted towards transitioning their Grayscale Bitcoin Trust (GBTC) into an ETF in intend to keep up with the competitors.

If authorized, the “Kryptoin Bitcoin ETF Trust” will be noted on the CBOE BZX Exchange rather than the New York Stock Exchange. Krypton’s amended S-1 filing revealed that the firm had already added its prospectus to the list of quickly growing Bitcoin ETF filings.

It also specified that Kryptoin would not “purchase or offer bitcoin directly, although the [firm] might offer bitcoin to pay certain expenditures.” Rather, the firm will aim to run through “in-kind” transactions when offering or redeeming shares. This will be carried out in blocks of 50,000 shares at the fund’s net property worth (NAV).

Only Authorized Purchasers may purchase or redeem Shares with the Trust, and they will do so by providing bitcoin to the Trust in exchange for Shares when they buy Shares; alternatively, the Trust will deliver bitcoin to such Authorized Participants when they redeem Shares from the Trust.”

When it comes to the pricing of the ETF, its shares will be valued according to the CF Bitcoin settlement cost. The trust’s management costs were not divulged, however will likely be in line with the market.

Canada’s Purpose Bitcoin ETF (BTCC.B) increased to $ 1 billion AUM previously recently, demonstrating the rapidly growing demand for crypto-based exchange traded funds. Source: Tradingview.com
Featured image from UnSplash