Following BlackRock’s recent filing, WisdomTree, a leading exchange-traded fund (ETF) provider, has submitted an application to launch the WisdomTree Bitcoin Trust, a spot Bitcoin ETF, to be listed on the Cboe BZX Exchange. This move is in line with the growing interest in Bitcoin within the traditional finance sector.
The application details WisdomTree’s investment goal of gaining exposure to Bitcoin’s price while considering the expenses and liabilities associated with the ETF’s operations. The firm plans to value the shares daily based on the CF Bitcoin US Settlement Price, which consolidates trade flow from major Bitcoin spot exchanges.
WisdomTree’s strategy involves conducting “in-kind” transactions with Authorized Participants, allowing them to deliver or facilitate the delivery of Bitcoin to the Trust’s custodian, U.S. Bank, National Association. Despite the name, both WisdomTree’s filing and BlackRock’s filings function as spot ETFs.
The Securities and Exchange Commission (SEC) has previously rejected applications for spot Bitcoin ETFs, although it has approved Bitcoin futures ETFs. The filings by BlackRock and WisdomTree reflect the industry’s push to provide investors with regulated options for participating in the Bitcoin market.
The back-to-back filings by BlackRock and WisdomTree underscore the growing recognition of Bitcoin’s potential in traditional finance. By applying for spot ETFs, these asset management giants are acknowledging the demand for regulated investment vehicles in the space. The filings may pave the way for broader adoption and a new wave of institutional investors entering the Bitcoin market.
WisdomTree’s Bitcoin ETF aims to gain exposure to Bitcoin’s price while maintaining low expenses. The Trust will hold Bitcoin to achieve this goal, the company said in its SEC filing. The WisdomTree Bitcoin ETF will use an independent pricing source in valifying its Bitcoin.
This move comes just two weeks after the SEC filed lawsuits against Coinbase and Binance, the top two crypto exchanges by market share. Despite this, mainstream US financial companies are showing increased interest in the crypto sector.
