WisdomTree has entered the race for Bitcoin exchange-traded funds as the firm applies to launch the WisdomTree Bitcoin Trust (Bitcoin-ETF). WisdomTree is a global New York exchange-traded fund, an asset manager with $87 billion in assets under its custody.
The application filed with the United States Security and Exchange Commission (SEC) stated that the WisdomTree Bitcoin Trust will be an exchange-traded fund that issues common shares of beneficial interest. The shares will be listed on the Cboe BZX Exchange, Inc. and will trade under the ticker symbol “BTCW.”
WisdomTree Bitcoin ETF is sponsored by WisdomTree Digital Commodity Services, with Delaware Trust Company serving as its trustee. The custodian who will hold all of the Trust’s bitcoin either directly or through a subcustodian, is U.S. Bank, National Association. The bank will hold the Bitcoin on behalf of the Trust.
According to the application document filed with the SEC, the reason for the Trust’s investment is “to gain exposure to the price of bitcoin, less expenses and liabilities of the Trust’s operations.”
In line with the objective, the Trust’s daily Shares value will be calculated based on the CF Bitcoin US Settlement Price, the document said. The calculation however will be a consolidation of the trade flow of major bitcoin spot exchanges.
Moreso, at the moment, the Trust does not intend to acquire or sell Bitcoin directly; instead, the Trust will sell or redeem its shares “in-kind”. However, the Sponsor (WisdomTree Digital Commodity Services) may direct the custodian to sell Bitcoin to pay certain expenses. This derivative will hold in certain circumstances such as liquidation.
WisdomTree previously filed an ETF application in 2021 and in 2022, both of which were rejected over surveillance-sharing agreements and protection against market manipulation. Recently, BlackRock filed for a BlackRock Bitcoin ETF application which seemed to have fueled the consideration for a Bitcoin ETF by many firms. For WisdomTree, it spurred the firm for a re-application after previous rejections.
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