Wilshire Investment Group LLC is a well-established asset management company based in Los Angeles, California. Recently, Wilshire has shown increasing interest in expanding into the cryptocurrency space by launching Bitcoin index funds. In particular, Wilshire Phoenix Funds LLC, a subsidiary of Wilshire Investment Group, has filed for SEC approval of a publicly-traded Bitcoin Trust. If approved, this would allow both institutional and retail investors to get exposure to Bitcoin through a regulated investment vehicle. The move indicates that major players on Wall Street see the potential of digital assets and are looking for compliant ways to participate in this emerging market.
Wilshire seeks SEC approval for Bitcoin Trust to provide regulated crypto exposure
In June 2020, Wilshire Phoenix Funds submitted an S-1 registration statement to the SEC for a proposed Bitcoin Commodity Trust. The Trust aims to track the prices of Bitcoin and provide investors with convenient access to investing in digital assets. The minimum investment would be $5,000, lower than most existing crypto investment products like the Grayscale Bitcoin Trust which requires a $50,000 minimum. If approved, the Trust would trade on the OTCQX Marketplace, allowing both institutional and retail investors to easily buy and sell shares tied to Bitcoin’s price movements. The ability to redeem shares directly with Wilshire is another key feature that distinguishes this proposed Bitcoin Trust from existing ones like GBTC that do not allow redemptions.
Wilshire partners with Fidelity Digital Assets for crypto custody services
To operate its proposed Bitcoin Trust, Wilshire Phoenix has partnered with Fidelity Digital Assets to provide custody services for the cryptocurrency holdings. Fidelity Digital Assets is a leading crypto custodian for institutions, with over $7 billion in assets under custody. By leveraging Fidelity’s institutional-grade security protocols, Wilshire aims to assure investors that the Trust’s Bitcoin will be stored safely in cold wallets. The custody partnership with Fidelity also enables the Bitcoin Trust to meet the strict operational standards required by the SEC for approval. Overall, Wilshire’s move to work with Fidelity reflects the growing trust in established financial services firms to provide the infrastructure for regulated crypto investing.
Launch of Bitcoin Trust positions Wilshire as a crypto leader among asset managers
While the SEC has yet to approve Wilshire’s Bitcoin Trust, the very act of seeking regulatory permission underscores the asset manager’s forward-looking approach. Wilshire is aiming to get ahead of the competition by staking a position in the rapidly growing crypto space. If the Bitcoin Trust is successfully launched, it would vault Wilshire into the top tier of financial institutions offering digital asset investment products. Other major asset managers like Fidelity and Franklin Templeton have filed for Bitcoin ETFs, but an SEC-approved Bitcoin Trust could give Wilshire first-mover advantage. For mainstream investors who are still wary of direct crypto exposure, the Trust would provide a familiar way to invest in Bitcoin through an established provider.
The efforts by Wilshire Investment Group to launch a regulated Bitcoin Trust reflect the increasing acceptance of cryptocurrencies as an investable asset class by traditional finance firms. Wilshire’s expertise in fund management combined with its partnerships with leaders in crypto custody and trading place it in a strong position to become a major provider of institutional-grade digital asset investment vehicles, should regulatory approval be granted.