Wilshire Phoenix Submitted Paper With the US SEC For Publicly Traded Bitcoin-Backed Fund

By Chris Torres | June 13, 2020

Investment company Wilshire Phoenix has reportedly submitted an S-1 registration statement with the US SEC, to get a publicly traded Bitcoin Fund regulatorily authorized. 

“The Shares will provide investors with exposure to bitcoin in a manner that is accessible and cost-efficient without the uncertain and often complex requirements relating to acquiring or holding bitcoin.”

Wilshire’s new Bitcoin Commodity Trust reportedly has a target to list its shares for public trading on OTC Markets Group, Inc.’s OTCQX Best Marketplace. Upon issuance, shares of the trust is reportedly available for purchasing and selling during the trading day, similar to any other publicly traded security.

Wilshire’s BCT – bearing resemblances to Grayscale’s Bitcoin Trust (GBTC) – reportedly enables the purchase of Bitcoin through shares of stock on the mainstream market, pegged individually to Bitcoin, with price value determined accordingly to Bitcoin’s going market rate. 

The BCT-held Bitcoin will reportedly be in line with the Bitcoin price index, decided by the Chicago Mercantile Exchange (CME). The CME CF Bitcoin Reference Rate (BRR) will reportedly assist with Bitcoin’s price tracking, throughout a number of industry exchanges, with the similar rate adopted by the CME to cash settle its regulated Bitcoin Futures

“Except for transaction costs associated with the purchase and sale of bitcoin, the Trust’s primary recurring expense is expected to be the Sponsor’s fee which will be determined by applying an annual rate of 90 basis points (0.90%) to the Trust’s NAV (the ‘Sponsor’s Fee’).”

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