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US SEC starts review of WisdomTree Bitcoin ETF application

Updated: Aug 23, 2024
Published: Apr 10, 2021
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The United States Securities and Exchange Commission (SEC) is dealing with numerous Bitcoin exchange-traded fund (ETF) applications at the moment. The agency has begun reviewing the proposal by WisdomTree, starting the countdown clock to a final decision.

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WisdomTree application now under review

The US SEC has started reviewing the Bitcoin ETF application submitted by WisdomTree. According to the public notice published yesterday, the regulatory agency said it has begun looking at the Bitcoin ETF proposal.

WisdomTree filed its Bitcoin ETF with Cboe BZX Exchange last month. However, the firm had previously attempted to launch a regulated financial product with exposure to cryptocurrencies.

The cryptocurrency market had been clamoring for the US SEC to approve a Bitcoin ETF in the country. Canada had already approved three Bitcoin ETFs, while another one is live in Brazil. A Bitcoin exchange-traded fund would provide retail and institutional investors a chance to invest in a regulated financial product that tracks the leading cryptocurrency's performance. Investors can gain exposure to Bitcoin without investing directly in the cryptocurrency.

The WisdomTree Bitcoin Trust is the second active Bitcoin ETF application the federal regulator is evaluating in the United States. The regulatory agency is already reviewing the Bitcoin ETF application submitted by VanEck, and its initial comment period is set to end in less than a week. However, it has only gotten five comments so far.

The SEC is expected to make a final decision on the VanEck proposal next month. Meanwhile, the countdown for the final decision on the WisdomTree proposal has begun, and SEC has 45 days to make its decision known. It can also extend the review period to give it more time to analyze the proposal.

SEC deals with numerous ETF applications

The US SEC is currently dealing with numerous Bitcoin ETF applications. Yesterday, Kryptoin Investment Advisors, an asset manager launched by Jason Toussaint of SPDR Gold Shares fame, submitted its Bitcoin ETF application to the regulatory agency.

Following Kryptoin's application, the SEC now has to deal with a total of eight active Bitcoin ETF proposals. The other applications include Anthony Scaramucci's SkyBridge Capital, Fidelity-linked Wise Origin Bitcoin Trust, Valkyrie, NYDIG, and Simplify.

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