WisdomTree Joins Race For Bitcoin ETF Approval, Targets Cboe BZX Exchange

WisdomTree, a leading player in the exchange-traded funds (ETFs) domain, has submitted a request to greenlight the WisdomTree Bitcoin BTC/USD Trust, aiming for a listing on the Cboe BZX Exchange.

This development closely follows a similar initiative by BlackRock Inc BLK, which reflects the burgeoning appeal and acknowledgment of Bitcoin within conventional financial circles.

WisdomTree has detailed its investment goal as achieving exposure to Bitcoin prices while taking into account the costs and liabilities associated with managing the ETF.

WisdomTree has opted to calculate the share values on a daily basis, leveraging the CF Bitcoin US Settlement Price, a metric that combines trading data from prominent Bitcoin trading platforms.

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WisdomTree's strategy involves engaging in "in-kind" transactions with Authorized Participants. This would empower them to either transfer or streamline the transfer of Bitcoin to the Trust's custodian, U.S. Bank, National Association.

Notwithstanding its designation as a trust, the framework presented in WisdomTree's filing, as well as BlackRock's, operates akin to spot ETFs.

Historically, the U.S. Securities and Exchange Commission (SEC) has turned down requests for spot Bitcoin ETFs, while giving the nod to Bitcoin futures ETFs.

The fresh submissions by BlackRock and WisdomTree are indicative of the sector's drive to present investors with regulated avenues for dabbling in the Bitcoin market, albeit with some compromises intrinsic to sovereign Bitcoin usage.

The back-to-back filings by BlackRock and WisdomTree underscore the escalating validation of Bitcoin's potential in mainstream finance.

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