New York-based firm Simplify Exchange Traded Funds has filed an application to list an exchange-traded fund (ETF). It is expected to invest up to 15% in Bitcoin via the Grayscale Bitcoin Trust.
The U.S. Securities and Exchange Commission remains sceptical about launching a “pure” Bitcoin ETF. Earlier applications were filed by NYDIG, Bitwise, VanEck and Valkyrie Digital Assets, but as of writing the regulator had not approved any of them.
In its investment strategy, the firm says that GBTC holdings up to 15% of assets under management (AUM) via a controlled subsidiary would raise the likelihood of access to cryptocurrencies. Simplify Exchange Traded Funds will be able to satisfy U.S. tax-law requirements for regulated investment companies.
According to the prospectus for the Simplify U.S. Equity PLUS Bitcoin ETF, up to 85% of assets under management would be allocated to the purchase of American-listed stocks.
If approved, the ETF would list on Nasdaq under the ticker SPBC.
The management fee will be 0.5%. The Bank of New York Mellon will serve as administrator, custodian and transfer agent. The oldest bank in the United States recently announced an expansion of its services with bitcoin operations and other digital assets.
As of March 10, assets under management at Grayscale Investments stood at $43.3 billion. For GBTC, that 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.
Total AUM: $43.3 billion$BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC pic.twitter.com/68xbZw1i0B
— Grayscale (@Grayscale) March 10, 2021
In Canada, the local regulator approved two Bitcoin ETF filings in February — from Purpose Investments and from Evolve Funds Group. In the first two days, the first of them attracted $421 million.
Earlier, Digital Currency Group, Barry Silbert’s parent company of Grayscale, announced readiness to buy GBTC shares worth up to $250 million.
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