Digital Currency Revolution Series: Wisdomtree Files For Bitcoin ETF Proposal With US-SEC

Yesterday, the US-based exchange-traded fund (ETF) provider, ‘WisdomTree Investments’ filed for an ETF that may invest up to 5% of its net assets in the Chicago Mercantile Exchange’s (CME) bitcoin futures contracts, as per the documents published by the U.S. Securities and Exchange Commission.

The Fund may invest in ETFs. ETFs are investment companies that trade like stocks on a securities exchange at market prices rather than NAV. As a result, ETF shares may trade at a price greater than NAV (premium) or less than NAV (discount). The Fund, if investing in an ETF, indirectly bears fees and expenses charged by the ETF in addition to the Fund’s direct fees and expenses. Investments in ETFs are also subject to brokerage and other trading costs that could result in greater expenses for the Fund.

Despite the various attempts of introducing bitcoin ETF have been declined by the regulator in the recent past, this latest development may bring back some ray of hope among the investors’ community.

The SEC has meticulously pondered the scope of the cryptocurrency market and its potential of manipulation, attempts to ensure the safety of the custody of bitcoins holding.

The asset manager firm was in the news of launching a “regulated stablecoin” in the recent past. Wisdomtree Investments , which is New York based ETF provider launched a new BTC-based exchange-traded product (ETP) in the name of ‘BTCW’ on Switzerland’s SIX stock exchange.

Well, amid the growing concern about bitcoin ETFs as SEC has been constantly declining its approval, the freshly introduced ETP product on bitcoin by WisdomTree would be quite unique from the other cryptocurrency ETPs traded on SIX, as the BTCW product would be physically backed by bitcoins held in storage. 

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