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  • Asset manager WisdomTree has amended its Bitcoin spot ETF application.
  • Interest in Bitcoin-related investment is growing among institutional investors.

In a recent development, WisdomTree, a billion-dollar giant in the financial industry, has resubmitted its proposal for a spot Bitcoin Exchange-Traded Fund (ETF) to the U.S. Securities and Exchange Commission (SEC). 

This development, as highlighted by Bloomberg ETF analyst James Seyffart in a recent post, marks a pivotal moment as the company seeks approval to launch a product that would allow mainstream investors to gain exposure to the world’s leading cryptocurrency directly through the traditional financial markets.

WisdomTree’s Bitcoin ETF Journey

This resubmission comes on the heels of a setback in October 2022 when the SEC denied approval for the WisdomTree Bitcoin Trust, citing concerns about insufficient investor protection. Despite this, WisdomTree remains undeterred, indicating a steadfast determination to launch a spot Bitcoin ETF.

The revised spot Bitcoin ETF prospectus, submitted in the form of an S-1 filing, details WisdomTree’s commitment to addressing the SEC’s concerns. The company is actively engaging in discussions with the regulatory body, aiming to assuage fears related to market manipulation, investor protection, and overall market stability. 

WisdomTree is proactively incorporating measures in its proposal to ensure compliance with regulatory standards and create a secure investment avenue for both institutional and retail investors.

In its initial filing on June 21, 2023, WisdomTree outlined its investment goal for the WisdomTree Bitcoin Trust. The company aims to provide investors with exposure to Bitcoin’s price movements while carefully considering associated fees and liabilities inherent in ETF operations. The daily pricing of these funds will be based on the U.S. Bitcoin CF settlement price, aggregating trading flows from major Bitcoin spot exchanges.

Growing Interest in Bitcoin-Related Investment Products

WisdomTree is not alone in its pursuit of a spot Bitcoin ETF. Currently, there are 11 spot Bitcoin ETF applications under review by the SEC, and if GBTC conversion ETF applications are included, the total number rises to 12. This influx underscores the growing interest in Bitcoin-related investment products, with various companies vying for approval to bring these offerings to the market.

Despite this influx, the SEC has extended its timeline for making a decision on Hashdex’s application to convert its Bitcoin futures ETF into a spot Bitcoin ETF. This delay also affects Grayscale’s application for an ether futures ETF, showcasing the regulator’s cautious approach to such financial products. 

Meanwhile, BlackRock, a global asset management giant with $8 trillion in assets under management, has earlier urged the SEC to reconsider its regulatory approach to crypto ETFs. In a recent filing, BlackRock argues against the SEC’s differentiation between already approved futures ETFs and spot market crypto ETFs. 

The firm asserts that both products operate with a shared dependency on underlying spot markets, making a harmonized regulatory review necessary. BlackRock’s advocacy for a level playing field between spot market and futures-based ETFs suggests a growing industry sentiment that current regulatory distinctions are unjustified.

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