WisdomTree Files Application for Spot Bitcoin ETF After Blackrock’s Filing

WisdomTree is a leading provider of Exchange-Traded Funds (ETFs) filed an application Seeking approval for the launch of the WisdomTree Bitcoin Trust to be listed on the Cboe BZX exchange. This filing comes in the wake of BlackRock’s recent application for the Spot Bitcoin ETF, which reflects the growing interest and recognition of bitcoin within the traditional finance space.

In its filing, WisdomTree outlined its investment objective of gaining exposure to the price of bitcoin while considering the expenses and liabilities associated with operating the ETF. WisdomTree intends to provide daily pricing of shares based on the CFBitcoin US settlement price, which aggregates trade flows from major bitcoin spot exchanges.

WisdomTree’s approach involves conducting transactions “virtually” with authorized participants, allowing them to deliver or facilitate the delivery of bitcoin to the trust’s custodian, US Bank, National Association. Although the name indicates a trust, both WisdomTree’s filing and BlackRock’s filing operate as spot ETFs, which explained further here,

While the Securities and Exchange Commission (SEC) has rejected previous applications for spot bitcoin ETFs, it has approved a bitcoin futures ETF. The filings by BlackRock and WisdomTree reflect industry pressure to provide regulated options for investors to participate in the bitcoin market, albeit at the expense of assets exclusively for sovereign bitcoin use.

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 filing could pave the way for wider adoption and a new wave of institutional investors entering the bitcoin market.