According to a SEC [Securities and Exchange Commission] filing revealed on Friday, the New York-based Wilshire Phoenix intends to provide bitcoin to some investors via its new trust, with a max proposed aggregate offering price of $2 Mln, or 80,000 shares.
“The Shares will offer investors with exposure to bitcoin in a state that’s accessible & cost-efficient without the uncertain and sometimes complex requirements concerning acquiring or holding bitcoin,” the filing added.
The trust is also looking forward to compete with Grayscale Investments’ $3.6 Bln bitcoin trust, which the firm launched earlier in 2013. Grayscale filed to turn its bitcoin trust into an SEC reporting company last year.
In line with the Wilshire Phoenix filing, Fidelity Digital Asset Services will function the trust’s bitcoin custodian, while UMB Bank will function the cash custodian.
While the cash holdings will have FDIC insurance, the bitcoin held will only be insured against theft in more than $100 Mln, consistent with the filing.
The trust’s value are going to be calculated each business day at 4:00 p.m. Eastern by its administrator, consistent with the document. The worth will be derived by just multiplying bitcoin’s price based on CME’s bitcoin index at the point of time the coins are held.
Wilshire is probably best known within the cryptocurrency space attempting to launch a bitcoin ETF, hoping to succeed where several other companies failed. The SEC rejected the proposal earlier this year. the thought behind a crypto ETF is it could make bitcoin more accessible to a broader range of investors who won’t be comfortable investing directly in bitcoin.