As indicated by the June 12 recording with the U.S. Securities and Exchange Commission (SEC), the New York-based investment organization will present to 80,000 shares at a maximum $25 per share.
Wilshire Phoenix, which has had an exchange-traded fund (ETF) application dismissed by SEC in the past, aims to raise $2 million from the sale, which “will be used to purchase bitcoin (BTC).”
An unnamed organization spokesperson is, nonetheless, quoted elsewhere suggesting the actual number of shares to be sold is yet to be settled.
“The shares will furnish investors with exposure to bitcoin in a way that is accessible and cost-proficient without the uncertain and regularly complex requirements identifying with acquiring or holding bitcoin,” said the firm.
The recording notes that the trust “will have no assets other than bitcoin”, although it “might hold U.S. dollars for short periods of time” for buying and selling of BTC, fees and installment of redemptions.
Bitcoin custody will be with Devotion Computerized Asset Securities and dollars will be held by Umb Bank. According to the recording, bitcoin held may be insured against burglary above $100 million, while cash is secured under the Government Deposit Insurance Organization.
Whenever endorsed, Wilshire Phoenix’s BCT could put it in rivalry with Grayscale Investments Bitcoin Trust (GBTC), which has 365,000 BTC worth $3.35 billion, at current market prices, under administration.
The Bitcoin Ware Trust proposes the board fees of just 0.9% every year contrasted with GBTC’s 2%. And while Wilshire’s shares are redeemable, this choice is not accessible for investors of Grayscale, which states on its website that it “does not currently work a reclamation program and may end creations every now and then.”
Wilshire Phoenix has previously sought endorsement for a bitcoin ETF that was dismissed by the SEC in Spring. The exchange-traded fund proposed to hedge BTC against U.S. Treasury Bills. The thought was that an ETF would help retail investors gain bitcoin exposure requiring little to no effort.
The SEC has turned down several applications for a bitcoin ETF, including Bitwise and Gemini proposals, leaving no nearby alternative for U.S. based investors.
Be that as it may, Sweden’s Bitcoin One Tracker, an exchange-traded note, provides U.S. investors with an opportunity to exchange BTC-based instruments. The security has been exchanging on the Nasdaq Stockholm exchange since 2015 and offers quotes in U.S. dollars.
In the Wilshire Phoenix documenting, the organization says each BCT share represents bitcoin ownership. The shares will be “quoted on Otc Markets Group, Inc’s. Otcox Best Commercial center.”