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WisdomTree seeks U.S SEC approval to launch Bitcoin ETF

Updated: Aug 23, 2024
Published: Mar 12, 2021
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WisdomTree has become the latest company to seek the United States SEC’s approval to launch a Bitcoin ETF. They filed a document with the regulatory agency yesterday and intends to launch a Bitcoin ETF that would make it easier for institutional investors to gain exposure to the leading cryptocurrency.

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The New York-based ETF sponsor and asset manager is a leading financial investment firm with over $60 billion in assets under management. WisdomTree intends to list common shares of the Bitcoin ETF on the Cboe BZX Exchange, and the ETF will trade under the ticker “BTCW.”

WisdomTree ETF to provide unique benefits

According to the firm, investors will indirectly invest in a portfolio made up of the leading cryptocurrency via a traditional brokerage. This investment method allows the investors to bypass the risks associated with holding, transferring, or buying directly from cryptocurrency exchanges.

According to the SEC form, WisdomTree said, “The Trust is an exchange-traded fund that issues Shares that will be traded on the Exchange. The Trust’s investment objective is to gain exposure to the price of bitcoin as represented by the Reference Rate, less expenses and liabilities of the Trust’s operations. In seeking to achieve its investment objective, the Trust will hold bitcoin and will value its Shares daily based on the Reference Rate, which is based on an aggregation of executed trade flow of major bitcoin exchanges.”

Bitcoin ETFs are becoming popular

Regulatory agencies have turned away proposals for Bitcoin ETFs over the past few years. However, they are now more accommodating of the thoughts. Canada already has three Bitcoin ETFs, while Malaysia approved the first Bitcoin ETF in South-East Asia yesterday.

In the United States, the SEC is yet to approve any proposal for a Bitcoin ETF. However, VanEck and a few other companies have filed proposals to list Bitcoin ETFs on brokerage platforms. Grayscale is also gearing up with its proposal as it intends to remain one of the leading funds and trusts in the cryptocurrency space.

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