Key Points
- WisdomTree has filed for a Bitcoin exchange-traded fund (ETF).
- This isn’t the first time WisdomTree has shown interest in Bitcoin.
- Earlier, this month BlackRock had also filed for a Bitcoin ETF
WisdomTree, a well-known purveyor of exchange-traded funds (ETFs), has submitted a request to the Cboe BZX Exchange to green-light the debut of the WisdomTree Bitcoin Trust. This move follows Blackrock’s recent application for a bitcoin ETF, which serves as a clear indication of the growing curiosity and acknowledgement of bitcoin in the realm of traditional finance.
JUST IN: $87 billion WisdomTree officially files for spot #Bitcoin ETF pic.twitter.com/wK52aDrJM0
— Bitcoin Magazine (@BitcoinMagazine) June 20, 2023
WisdomTree into Bitcoin
WisdomTree has recently laid out its investment objective for gaining exposure to the ever-fluctuating price of bitcoin. However, they have also taken into consideration the expenses and liabilities associated with the ETF’s operations. The value of WisdomTree’s shares will be calculated on a daily basis using the CF Bitcoin US Settlement Price, which pools trade flow from various major bitcoin spot exchanges.
In order to facilitate the delivery of bitcoin to the trust’s custodian, U.S. Bank, National Association, WisdomTree has adopted a unique “in-kind” transaction approach with Authorized Participants. It should be noted that despite its name, WisdomTree’s filing functions as a spot ETF, which is quite similar to the BlackRock’s ETF filing.
SEC’s Reluctance for Bitcoin ETFs
It’s important to note that this isn’t the first time for WisdomTree. Last year, the company’s application was denied approval to list a spot Bitcoin ETF. And it’s not just WisdomTree that’s struggling. The U.S. Securities and Exchange Commission (SEC) has been turning down several applications for spot Bitcoin ETFs lately.
One of them was from Grayscale Investments, which wanted to convert its massive Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF. It’s a tough battle for companies like WisdomTree and Grayscale, who are trying to bring Bitcoin ETFs to the market. Will they eventually succeed or will the SEC continue to deny their applications? Only time will tell.
Significance of this Move
In recent years, Bitcoin has become a buzzword in the world of finance and investment. However, due to its unregulated nature, the Securities and Exchange Commission (SEC) has previously rejected applications for spot Bitcoin ETFs. But now, the tide seems to be turning.
Two financial giants, BlackRock and WisdomTree, have submitted filings for spot Bitcoin ETFs. While the SEC has approved Bitcoin futures ETFs in the past, this would be the first time a spot Bitcoin ETF would be approved in the United States if WisdomTree’s filing is successful.
This move is reflective of the growing demand for regulated investment options in the Bitcoin market. With the ETF tracking the price of Bitcoin, investors would be able to buy and sell shares on a major exchange with ease. This would undoubtedly make it easier for investors to invest in Bitcoin, allowing more people to gain exposure to this increasingly popular asset class.
End Note
WisdomTree has made a bold move by submitting an application to launch their very own WisdomTree Bitcoin Trust – a spot Bitcoin ETF that could potentially make waves in the cryptocurrency market. However, this is not the first time WisdomTree has tried to launch such a product, and the SEC has previously rejected similar applications.
Despite this, WisdomTree’s decision to try again, alongside BlackRock’s recent filings, could indicate that the SEC is slowly shifting their stance towards spot Bitcoin ETFs. Should the WisdomTree Bitcoin Trust get the green light, it would mark a historic moment as the very first spot Bitcoin ETF in the United States. As a result, this could have far-reaching implications for the cryptocurrency industry as a whole.
