Ex-head of the World Gold Council intends to launch Bitcoin-ETF

Former Executive Director of the World Gold Council (WGC) Jason Tussen is developing the Bitcoin ETF in conjunction with the asset management firm Kryptoin Investment Advisors, CoinDesk reports.

A Delaware company filed a registration application with the U.S. Securities and Exchange Commission (SEC). Toussin, who previously also managed one of the largest SPDR Gold Shares ETFs, is leading the company in creating a new exchange product.

The value of cryptocurrency assets held by the fund will be determined at the Chicago Mercantile Exchange reference rate – CME CF Bitcoin Reference Rate. Following approval, ETFs are scheduled to be listed on the NYSE Arca Exchange.

“The benefits and challenges when it comes to bitcoin as an asset class are similar to those that were when the Gold Council introduced SPDR Gold Shares to the market. The SEC had to explain a lot to get a comfortable level of understanding of the underlying gold market product, ”said Toussin.

In his opinion, there are two aspects that are crucial for the regulator's approval of a new product – an agreement on the exchange of information between the ETF provider and the exchanges, as well as a better understanding of the SEC underlying market.

Toussin noted that the Bitcoin ETF meets resistance from the regulator, as well as earlier exchange-based funds based on gold. Since both assets are not publicly traded securities, this raises the SEC's concerns about pricing transparency and volume manipulation, he said.

The ex-director of WGC suggests that the Bitcoin ETF approval process may be lengthy, but as the spot and futures markets develop, the regulator will be more favorable to cryptocurrency, he added.

Recall that the SEC is also considering a recently updated application for approval of Bitcoin-ETF from Wilshire Phoenix. Earlier, the agency rejected the proposal to launch such a fund from Bitwise Asset Management. The company has already announced plans to submit a new application for Bitcoin ETF.

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