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Crypto index fund provider Bitwise Asset Management applied to launch a new bitcoin-backed exchange-traded fund (ETF) with the Securities and Exchange Commission on Thursday. The proposed ETF differs from the company's first filing in July 2018, in that it would require third-party custodians to hold the physical bitcoins. "We believe the crypto trading ecosystem has evolved in significant ways in the past year," said John Hyland, global head of ETFs for Bitwise in a press release. "Having a regulated bank or trust company hold physical assets of a fund has been the standard under U.S. fund regulation for the last 80 years, and we believe that is now possible with bitcoin." The reluctance of the SEC to green light such a product is part of broad regulatory hurdles that the industry faces in its attempt to gain widespread adoption. On Thursday, a single bitcoin was fetching around $3,800, down 5.5% on the day. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.