- NYDIG has drafted a Bitcoin ETF proposal with the US SEC
- NYDIG believes that this year the regulatory body will be approving the first BTC ETF
- The firm aims to achieve its investment goal by holding Bitcoin
- Morgan Stanley was found listed in the documentation to be working together with NYDIG
Bitcoin Exchange Traded Fund (ETF) has yet always been rejected by the US Securities and Exchange Commission (SEC). After the Biden administration chose Gary Gensler, the individuals in the cryptosphere came up with optimistic hope. On Tuesday, NYDIG, a subsidiary of Stone Ridge Asset Management, filed a Form S-1 statement with the US SEC for a Bitcoin-based ETF. NYDIG believes that this year will be the year the regulatory body approves the first ETF. The documents also listed that Morgan Stanley is also the initially authorized participant in the ETF.
Will the SEC approve the first Bitcoin ETF in 2021?
So far, the US SEC has rejected several proposals for Bitcoin ETFs. Many applications went rejected from the table of the regulatory body. In August 2018, it was known that the US SEC had rejected nine proposals for crypto ETFs on the same day. However, this time the new administration has changed the head of the regulatory body with a pro-Bitcoiner. Following this fact, NYDIG has believed that 2021 will be the first year when the US SEC will approve a crypto ETF.
What does NYDIG seek with the ETF proposal?
According to Jeff Kilburg, the founder and CEO of KKM Financial and partner at Valkyrie, currently, there are ten firms found shooting for crypto ETF. According to the registration filing, it is observed that the NYDIG is seeking to reflect the performance of the prices of the most famous crypto token. The firm aims to achieve its investment goal by holding Bitcoin. The firm will be valuing its assets daily in accordance with Generally Accepted Accounting Principles, which generally values BTC by reference to orderly transactions in the principal active market for BTC. Following the filing it is found that the name of Morgan Stanley was listed as an authorized participant. Notably, NYDIG is about to work with Morgan Stanley as an initially authorized participant.
The registration is warning to invest in the instrument
It is observed that NYDIG filed its proposal for the Bitcoin ETF on the same day when the price of Bitcoin achieved a new all-time, surpassing the level of $50k. According to the registration warning, investing in the instrument involves significant risks that might not be suitable for shareholders who are not able to accept volatility risks. Additionally, the shares are considered speculative securities involving high degree risk, where one can lose the entire investment.