WisdomTree, a prominent provider of exchange-traded funds (ETFs), has Apply Seeking approval to launch the WisdomTree Bitcoin Trust, to be listed on the Cboe BZX Exchange. This filing comes on the heels of BlackRock’s recent implementation of a bitcoin index ETF, indicating the growing interest and recognition of bitcoin in the traditional finance space.
In its filing, WisdomTree outlined its investment objective of exposure to the bitcoin price taking into account the expenses and liabilities associated with ETF operations. WisdomTree intends to value stocks daily based on the US CF Bitcoin settlement price, which aggregates trade flow from major Bitcoin spot exchanges.
WisdomTree’s approach involves conducting “in-kind” transactions with approved participants, enabling them to hand over or facilitating the delivery of bitcoin to a cashier, American Bank, National Association. Although the name implies a trust, both the WisdomTree files and the BlackRock files act as ETFs, which are explained here.
While the SEC has denied previous applications for Bitcoin spot ETFs, it has approved Bitcoin futures ETFs. The filings by BlackRock and WisdomTree reflect the industry’s push to provide investors with regulated options to participate in the bitcoin market, albeit at the expense of exclusive real estate for sovereign bitcoin use.
The consecutive filings by BlackRock and WisdomTree highlight 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 deposits may pave the way for broader adoption and a new wave of institutional investors entering the bitcoin market.