In a significant development within the cryptocurrency investment landscape, WisdomTree has taken a substantial stride toward the approval of its Bitcoin exchange-traded fund (ETF). The investment management firm has filed an amended proposal for its Bitcoin ETF application, joining a cohort of financial institutions vying for approval in the burgeoning crypto ETF market.
This move comes as part of the multi-stage approval process and signifies WisdomTree’s active engagement with the U.S. Securities and Exchange Commission’s (SEC) Corporate Finance Division.
One noteworthy aspect of WisdomTree’s amended Bitcoin ETF proposal is its focus on a “spot” Bitcoin ETF. This type of ETF is designed to track the current, or “spot,” price of Bitcoin directly, as opposed to being based on futures contracts, a characteristic present in some other proposed Bitcoin ETFs.
The allure of a spot Bitcoin ETF lies in its ability to offer investors a purer form of Bitcoin exposure by tracking the actual price of Bitcoin itself. As a result, it has garnered significant attention from investment giants like BlackRock, which is actively pursuing such a product.
WisdomTree’s Bitcoin ETF pursuit
WisdomTree is not the only player in the race to secure approval for a Bitcoin ETF. Recent developments in the industry have seen other major financial institutions submitting similar amendments to their Bitcoin ETF proposals. Bitwise, for instance, has resubmitted its amended proposal in response to feedback and inquiries.
Joining the fray, GlobalX ETFs and Fidelity have also filed their amended Bitcoin ETF prospectuses, while BlackRock has introduced a new filing shortly after.
Chasing the Bitcoin ETF dream
While the pursuit of Bitcoin ETFs by various financial institutions is gaining momentum, the road to approval is far from straightforward. Regulatory hurdles and delays have been commonplace in the approval process for these financial products.
Several Bitcoin ETF applications, including those from Hashdex, Franklin, and GlobalX, have recently faced postponements in their decision timelines. Such delays are inherent in the meticulous regulatory scrutiny applied to these innovative investment instruments.
Despite these setbacks, analysts remain cautiously optimistic about the eventual approval of Bitcoin ETFs.
Prominent ETF expert James Seyffart, for instance, predicts a “pretty good chance” of approval with odds as high as 90% by January 10, 2024. This optimism reflects the growing interest and demand for Bitcoin ETFs within the investment community.