Simplify’s Bitcoin ETF Would Invest in Grayscale’s Trust and U.S Stocks

The U.S  Securities and Exchange Commission’s (SEC) reluctance to approve a Bitcoin exchange-traded fund (ETF) doesn’t seem to discourage issuers these days.

One such is Simplify Asset Management, which has gone ahead to find ways to structure its products. The firm plans to roll out a Bitcoin product that’s not entirely focused on bitcoin. And why should they? The regulators still don’t trust the crypto sector.

Simplify’s U.S. Equity PLUS Bitcoin ETF

Simplify has filed its Equity PLUS Bitcoin ETF with the financial regulator. According to the filing, the Simplify U.S. Equity PLUS Bitcoin ETF will invest up to 15% of its assets in cryptocurrencies, either “indirectly and solely” through Grayscale’s Bitcoin Trust.

The rest of the funds would be put into U.S stocks. BNY Mellon would be the ETF’s administrator and asset custodian, while the ETF would trade on the Nasdaq exchange, if approved.

Simplify is not the only entity that has been looking for creative ways to structure its products in the U.S. Investment giant, JP Morgan, also recently filed with the SEC to launch its own “Cryptocurrency Exposure Basket.”

Simplify’s move of buying shares of Grayscale Bitcoin Trust, which invests solely in Bitcoin, provides access to the largest cryptocurrency’s price movements without physically purchasing Bitcoin.

Bitcoin ETFs In the U.S

For many years, Bitcoin ETFs in the United States have been met with rejection.

From the Winklevoss twins to VanEck’s, Bitcoin ETF filed with the SEC has so far been met with a brick wall. Years down the line, the story has still not changed.

The regulators continue to drown attempts of approving a bitcoin ETF giving reasons such as the bitcoin market is too volatile, it lacks sufficient surveillance and that it is too easily manipulated.

While the U.S regulators continue to reject Bitcoin ETF issuers, Canada’s financial regulator the Ontario Securities Commission (OSC) has approved two ETF issuers to invest directly in Bitcoin and other cryptocurrencies. They are the Purpose Bitcoin ETF (BTCC) and the Evolve Bitcoin ETF (EBIT) who have both been listed on the Toronto Stock Exchange.

Another bitcoin ETF called the CI Galaxy Bitcoin ETF by Mike Novogratz’s Galaxy Digital Holdings has been launched on the Toronto Stock Exchange. If approved, this would make the third Bitcoin ETF in North America.

As the U.S regulators continue to tread carefully, market participants and crypto enthusiasts seem to be optimistic that with Canada leading the way, a full-fledged ETF could soon be operational within the country.

Scroll to Top