Off to the Races: Kryptoin Re-files Bitcoin ETF Opting to List on Cboe Over Nasdaq
On April 9, 2021, the Delaware-based company and sponsor of the “Kryptoin Bitcoin ETF Trust” filed an S1 amendment for a bitcoin exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The asset manager re-filed its 2019 ETF application and instead of leveraging NYSE, the company plans to use Cboe BZX.
Kryptoin Joins the List of Bitcoin ETFs Hoping for Approval in 2021
The race for a bitcoin exchange-traded fund (ETF) in the United States has grown thick with competition in recent days. The asset manager Kryptoin has recently revealed it has re-filed with the SEC in order to get an ETF approved. With Kryptoin joining the competition, there are now seven bitcoin-based ETFs hoping to get approved by the U.S. regulator. The list includes Valkyrie, Vaneck, Fidelity, NYDIG, Wisdomtree, First Trust & Skybridge, and Kryptoin.
Kryptoin’s prospectus is not much different than its 2019 filing, except at that time it had chosen to list on NYSE Arca. However, this time around, Kryptoin’s prospectus sent to SEC on Friday named Cboe BZX as the listing exchange. Kryptoin has decided to add its prospectus to the list of bitcoin ETF filings, while both Vaneck and Wisdomtree step up for the SEC review. The company’s product will be named the “Kryptoin Bitcoin ETF Trust,” and the company would like to launch as soon as it is permissible.
The preliminary prospectus subject to completion further notes the “objective is to provide exposure to bitcoin at a price that is reflective of the actual bitcoin market where investors can purchase and sell bitcoin, less the expenses of the Trust’s operations.” Kryptoin adds that the firm will leverage a reference rate in order to determine the value of shares.
The SEC filing states:
In seeking to achieve its investment objective, the Trust will hold bitcoin, and in seeking to ensure that the price of the Trust’s shares is reflective of the actual bitcoin market, the Trust will value its shares daily as determined by the CF Bitcoin US Settlement Price.
Kryptoin CEO Has Experience With the SPDR Gold Shares ETF
There are already two North American bitcoin-based ETFs in Canada, and a few weeks ago in South America Brazil launched its first bitcoin ETF as well. The United States has yet to allow a bitcoin ETF, as the SEC has denied plenty and many have withdrawn their preliminary filings. The SEC has cited issues like price manipulation but since a lot of institutional money has jumped into the crypto ecosystem, many firms have hopes for 2021 approval.
Kryptoin’s ETF is led by Jason Toussaint, a businessman who has a lot of experience with ETFs. Toussaint was previously the CEO of World Gold Trust Services, a sponsor of SPDR Gold Shares ETF (GLD). Kryptoin’s CEO and board member Toussaint has also worked with ETFs and other investments with Morgan Stanley, Northern Trust Asset Management, and JP Morgan Asset Management.
What do you think about Kryptoin’s bitcoin ETF filing and the other ETFs waiting for approval? Let us know what you think about this subject in the comments section below.
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Author: Jamie Redman