New York-based firm Simplify Exchange Traded Funds has applied for an exchange-traded fund (ETF) listing. It is assumed that up to 15% he will invest in bitcoin through the Grayscale Bitcoin Trust.
The Securities and Exchange Commission (SEC) remains skeptical about the launch of a clean Bitcoin ETF. Previously, NYDIG , Bitwise , VanEck and Valkyrie Digital Assets have filed applications , but at the time of writing, the regulator has not approved any of them.
In its investment strategy, the firm indicated that investing in GBTC up to 15% of the funds under management (AUM) through a controlled subsidiary would increase the likelihood of approving access to cryptocurrencies. Simplify Exchange Traded Funds will be able to comply with US tax laws for regulated investment companies.
According to the Simplify US Equity PLUS Bitcoin ETF prospectus , the firm will use up to 85% of AUM to buy shares of American companies.
If approved, the ETF will be listed on the Nasdaq under the ticker SPBC.
Management fee will be 0.5%. The Bank of New York Mellon will act as the fund administrator, custodian and transfer agent . Recently, this oldest bank in the United States announced the expansion of the range of services with operations with bitcoin and other digital assets.
As of March 10, Grayscale Investments managed assets in the amount of $ 43.3 billion. For GBTC, this figure was $ 36.3 billion.
03/10/21 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
– Grayscale (@Grayscale) March 10, 2021
Recall that in Canada, the local regulator during February approved two applications for the launch of a Bitcoin ETF – from Purpose Investments and from Evolve Funds Group . In the first two days, the first of them raised $ 421 million .
Earlier, Barry Silbert’s Digital Currency Group, Grayscale’s parent company, announced its readiness to buy GBTC shares worth up to $ 250 million .