WisdomTree joins traditional finance's BTC race for Bitcoin ETF approval
|- WisdomTree is the newest addition to companies applying for Bitcoin ETF approval.
- The company, worth around 87 billion in asset management, filed for approval barely a week after BlackRock.
- The move shows a growing interest and recognition of BTC among players in the traditional finance space.
- It signifies the industry's demand for regulated investment vehicles, potentially paving the way for broader adoption.
WisdomTree has applied for consideration for its Bitcoin Trust approval and listing on the Cboe BZX Exchange. The application comes the same month and only days after BlackRock's filing, with market analysts still evaluating the chances of success for the latter’s application.
WisdomTree files Bitcoin ETF approval
WisdomTree, a renowned exchange-traded funds (ETF) provider, has applied for Bitcoin Trust approval, a move that, if successful, would see the platform's Bitcoin ETF listed on the Cboe BZX Exchange. This filing comes only six days after FXStreet reported BlackRock's application for a spot Bitcoin ETF in collaboration with Coinbase Custody.
The bold move indicates a growing interest and recognition of BTC among players in the traditional finance space. Notably, BlackRock is the world's largest investment manager, while WisdomTree is a global financial innovator focused on empowering investors to shape their futures and supporting financial professionals to serve their clients better and grow their businesses.
The company's hallmark is to search for better ways to invest relentlessly, hence its move to pioneer fundamentally weighted ETFs since 2006, equally prioritizing cost efficiency and performance. The company currently offers a wide range of ETFs and exchange-traded products (ETPs) with $94.7 billion in assets under management globally.
WisdomTree Bitcoin ETF application filing
Based on the filing, WisdomTree is setting out to gain exposure to the price of Bitcoin while the company considers the expenses and liabilities as it pertains to the operations of the ETF. Specifically, the platform plans to value the shares daily based on "the CF Bitcoin US Settlement Price, which aggregates trade flow from major BTC spot exchanges."
The ETF provider's approach involves performing "in-kind" transactions with Authorized Participants. This makes it possible to deliver BTC to the National Association, a US Bank that serves as the Trust's custodian.
WisdomTree and BlackRock's ETF filings operate as spot ETFs
Despite touting their applications as trusts, WisdomTree's filing operates as spot ETFs like BlackRock's.
It is worth mentioning that the US Securities and Exchange Commission (SEC) has a history of turning down several spot Bitcoin ETF applications. However, the filings by BlackRock and now WisdomTree point to a newly found motivation among players in the traditional finance space to provide investors with regulated options to participate in the BTC market.
Moreover, the subsequent filings by two of the biggest names in traditional finance also underscore the increasing recognition of the potential of Bitcoin in traditional finance. These applications acknowledge the industry's demand for regulated investment vehicles and could pave the way for broader adoption.
Notwithstanding, the news forecast a new wave of institutional investors making a foray into the BTC market.
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