Wilshire Phoenix files for ‘less volatile’ bitcoin-related ETF

Wilshire Phoenix files for ‘less volatile’ bitcoin-related ETF

Another crypto-related ETF proposed

New York-based investment-management firm Wilshire Phoenix has submitted an S1 filing with the Securities and Exchange Commission for a bitcoin-related exchange-traded fund.

The trust — United States Bitcoin and Treasury Investment Trust — would hold bitcoin, short-term U.S. Treasury bills and U.S. dollars. “The purpose of the Trust is to provide investors with exposure to bitcoin in a manner that is more efficient, convenient and less volatile than purchasing stand-alone bitcoin,” the Thursday filing stated.

“While the Shares are not intended to, nor is their purpose to, replicate a direct investment in bitcoin, they seek to provide investors with exposure to bitcoin with substantially lower volatility than a direct investment in bitcoin and without the uncertain and often complex requirements relating to acquiring and/or holding bitcoin,” the filing said.

According to a spokesperson for the company, the combination of Treasurys and U.S. dollars would reduce overall volatility in the price of the proposed ETF.

“This was made possible by my team, a group of dedicated experts each of whom comes to Wilshire Phoenix with a unique background. True to those diverse backgrounds, we were equipped to structure this offering, which is a preeminent example of what occurs when minds meet,” said Bill Herrmann, managing partner of Wilshire Phoenix, in an email to MarketWatch.

The filing comes as a number of asset-management firms seek approval for a bitcoin-backed ETF, the most recent being Bitwise Asset Management, which submitted its second filing for an ETF that would require physically held bitcoins.

However, lawmakers have yet to greenlight one, citing concerns with volatility and manipulation in the underlying markets that trade digital currencies.

“If I had one message to ProShares, Granite, Bitwise and the Winklevoss twins — our approaches may be different, but trust we all share one common goal. We are rooting for each of you,” said Herrmann.

The price of a single bitcoin BTCUSD, +0.10% was trading around $3,700 on Monday, more than 80% off its all-time high near $20,000.

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