WIsdomTree Joins Bitcoin ETF Hopefuls With Its Latest SEC Filing
WisdomTree Investments has joined the league of applicants seeking the U.S Securities and Exchange Commission's (SEC) approval to set up a Bitcoin Exchange-Traded Fund (ETF).
WisdomTree’s Bitcoin ETF Filing
The New York-based exchange-traded fund manager is applying when many other firms are vying for the much-anticipated approval from the SEC.
WisdomTree Bitcoin ETF submitted its filing to the SEC indicating its interest and plans to trade on Chicago’s Board Options Exchange’s (Cboe) BZX platform under the ticker BTCW. Other companies seeking approval from the SEC for a Bitcoin ETF include NYDIG, Valkyrie, and VanEck.
WisdomTree's ETF proposal plans to offer investors a regulated means to gain exposure to Bitcoin. The Trust would also allow speculators to execute trades through their brokers.
The filing also notes that the ETF would base its share price on the CME CF Bitcoin US Settlement Price, in which the price is calculated using the trade flow from major bitcoin spot exchanges.
Although no third-party custodian has been named, Delaware Trust Company would be the trustee.
This is not the first time WisdomTree is applying for an ETF, as the company had filed for one back in June 2020. The fund was said to be focused majorly on energy, agriculture, and metals, in which 5% of assets would be invested in bitcoin futures contracts.
Founded in 2006, WisdomTree investments which also currently manages a fund focused on investing in Ether products, is one of the major asset managers in the U.S. The company has subsidiaries in the US, Canada, Europe, and Japan and was established by Jonathan Steinberg.
Pressure Mounts On SEC Following Growing ETF Demands
The SEC has not welcomed ETFs even as calls for their incorporation are growing by the day. The regulatory agency has cited market manipulation as a major barrier to the approval of Bitcoin exchange-traded funds. According to the commission, ETFs will not maintain proper oversight as most BTC trades are made on unregulated crypto exchanges.
SEC Commissioner Hester Peirce has joined industry experts in calling for a relaxing of the SEC’s policy on cryptocurrencies. According to her, there should be a regulatory framework that will aid the nascent industry's growth.
Neighboring Canadian regulatory agency Ontario Securities Commission (OSC) has been more tolerant. In a receipt issued to Evolve Bitcoin exchange-traded fund (ETF), the commission gave its approval to the second Bitcoin fund after Purpose Bitcoin ETF. Evolve Bitcoin ETF will also be listed on the Toronto Stock Exchange (TSX).
Another Bitcoin ETF called the CI Galaxy Bitcoin ETF by Mike Novogratz’s Galaxy Digital Holdings has also been launched on the Toronto Stock Exchange. If approved, this would make the third Bitcoin ETF in North America.