WisdomTree, an asset manager with $87 billion under management, has filed a Bitcoin spot ETF application with the Securities and Exchange Commission (SEC). This news has generated great anticipation in the cryptocurrency market, as Bitcoin ETFs have once again captured the attention of various platforms looking to launch their own offerings. Below, we present the details of this request and its importance in the current context.
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WisdomTree Follows BlackRock and Files Bitcoin Spot ETF Application
WisdomTree Investments, a leading US-based asset manager, has decided to venture into the Bitcoin ETF space. According to recent reports, the company has filed an application with the SEC to launch a Bitcoin ETF called “WisdomTree Bitcoin Trust”. WisdomTree’s intention is to list this ETF on the Cboe BZX Stock Exchange under the ticker symbol BTCW.
WisdomTree’s primary goal with this request is to gain exposure to Bitcoin price movements, considering both the trading costs and the ETF obligations. The manager plans to calculate the value of the ETF’s shares on a daily basis using the US Bitcoin Settlement Price CF, which consolidates trading data from spot Bitcoin exchanges.
This application marks WisdomTree’s return to the Bitcoin ETF market after a setback experienced in 2021, when its previous application was rejected due to concerns related to market manipulation protection and surveillance information sharing agreements. However, WisdomTree’s decision to return to the market coincides with the filing of a Bitcoin ETF application by BlackRock, another asset management giant.
BlackRock Generates Interest in Bitcoin ETFs
BlackRock’s filing has generated a significant increase in interest in Bitcoin ETFs, with other firms expected to follow suit. ETF analysts Eric Balchunas and James Seyffart have said BlackRock’s filing has raised hopes of approval due to the company’s size and prominent reputation, as well as its influence in the financial industry.
Amid this growing interest in Bitcoin ETFs, it is important to note that the leading cryptocurrency was trading at $28,813 at the time of writing, posting a 7% daily gain.
In short, WisdomTree’s filing of a Bitcoin ETF application is a significant step on the path to mainstream adoption of cryptocurrency exchange-traded funds. As more asset managers join this trend, the cryptocurrency market is expected to continue to evolve and offer new investment opportunities for investors interested in Bitcoin.