The traditional finance (TradFi) players are entering the cryptocurrency space. Exchange traded funds (ETFs) are their go-to option and many are chasing the financial product offerings. Recently, BlackRock filed for a spot Bitcoin ETF, and Fidelity was said to do the same. Now, two more major names in the TradFi are stepping towards the Bitcoin ETF: WisdomTree and Invesco.
WisdomTree Knocking SEC for Spot Bitcoin ETF
Prominent exchange-traded funds provider, WisdomTree, reported to file for the launch of its own Bitcoin ETF on Wednesday, June 21. Dubbed WisdomTree Bitcoin Trust, the BTC ETF will be listed on the Cboe BZX Exchange under the ticker “BTCW.”
According to the WisdomTree filing, the objective of their investment is intended to gain Bitcoin exposure. In the process, it will also keep the expenses and liabilities aligned with the operations of the ETFs in consideration.
The New York based asset management fund is noted to derive its shares’ value on the basis of the CF Bitcoin US Settlement Price. In a nutshell, it will accumulate its value from Bitcoin spot exchanges already operating in the space.
The filing of BlackRock for a spot Bitcoin ETF with the Securities and Exchange Commission (SEC) mentioned the surveillance sharing agreement with the Chicago Mercantile Exchange (CME) futures markets. The WisdomTree filing also noted it. In the filing, the firm showcased its will to go with the similar surveillance agreement with a Bitcoin spot trading platform in the US.
WisdomTree is one of the popular asset managers in the US with approx $83 Billion worth assets under management. Earlier also, it had applied for spot Bitcoin ETF; but the SEC rejected its first application in December 2021, and the second in October 2022. Reasons for rejection from the US financial regulators were the security concerns associated with fraud and market manipulation.
Soon after the filing request of WisdomTree, another leading asset manager Invesco, reported to file for an ETF to the SEC.
Invesco Joins in for the Filing
The global investment manager, Invesco, with $1.4 Trillion assets under management, has applied for the ETF after failing to receive an approval earlier. It had applied for the first Bitcoin ETF in 2021, it was in collaboration with Galaxy Digital.
Invesco noted in its filing that investors are forced to opt for riskier alternatives given the absence of a regulated spot Bitcoin ETF. It argued an ETF with professional custodians and service providers eliminates the possibility for investors to depend upon the unregulated or “loosely regulated” foreign investment vehicles. Safe alternatives would keep the investors Bitcoin investment principal protected and intact.
Spot Bitcoin ETFs were hard to get approval from the SEC. Until today, no request or application for such offerings got green signaled from the financial regulator. Grayscale Investment went to file a lawsuit against the SEC after its application was rejected.
However, with the recent filing from asset management giant BlackRock has refueled the interest in spot Bitcoin ETFs. Many believe the application could be the first to get an approval in the United States.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/22/tradfi-giants-admiring-bitcoin-etfs-filing-with-the-sec/