Big Asset Management Wisdomtree Enters Spot Bitcoin ETF Race

Key Points:

• Another big player in the wealth management space, Wisdomtree, has joined the registration of a spot Bitcoin ETF.
• In the application, the company outlined its investment objective as exposure to the bitcoin price while considering the costs and liabilities associated with the operation of the ETF.
• In less than a week, seven companies filed for a bitcoin ETF showing a new wave of institutional investors entering the bitcoin market.

New York-based major asset management firm WisdomTree has applied for approval to launch the WisdomTree Bitcoin Trust (WisdomTree Bitcoin Trust), which will be listed on the Cboe BZX Exchange.

In the filing, WisdomTree outlined its investment goal of Bitcoin price exposure while considering the fees and liabilities associated with ETF operations. The company intends to price these funds daily based on the US Bitcoin CF settlement price, which aggregates trading flows from major Bitcoin spot exchanges.

WisdomTree’s approach involves “in-kind” transactions with authorized participants, allowing them to distribute bitcoins or facilitate the distribution of bitcoins to the trust’s custodians, National Bankers Association.

This filing comes after BlackRock’s recent application for a spot Bitcoin ETF, signaling the growing interest and recognition of bitcoin in the traditional financial space.

The documents show that the fund will be named “iShares Bitcoin Trust (iShares Bitcoin Trust)” and that its assets “will consist primarily of bitcoin held by custodians representing the fund.” The document states that the custodian is a crypto exchange Coinbase.

Although the United States Securities and Exchange Commission (SEC) has approved a number of bitcoin futures ETFs, it has rejected applications for spot bitcoin ETFs from all asset managers, including Grayscale, VanEck and WisdomTree.

In less than a week, a series of large asset management organizations such as Blackrock, Fidelity, Citadel, Charles Schwab, Deutsche Bank, MasterCard, and WisdomTree have all simultaneously targeted the spot ETF. This reflects the industry’s attempt to provide investors with regulated options to participate in the bitcoin market, albeit at the expense of assets dedicated to the sovereign use of bitcoin.

In addition, the registration actions also highlight the growing recognition of Bitcoin’s potential in traditional finance. By signing up for a spot ETF, these asset management giants are acknowledging the need for managed investment vehicles in the space.

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