ETF fund manager WisdomTree has confirmed that its WisdomTree Bitcoin Fund (BTCW) has been declared effective by the US Securities and Exchange Commission.
The historic leading wave of spot Bitcoin ETFs marks the first time US investors have access to exposure to the price of spot Bitcoin within the Exchange Traded Fund wrapper.
“Core to our heritage of innovation, WisdomTree is passionate about exploring new avenues for potential value creation for investors – our role in disrupting financial services with the ETF wrapper speaks exactly to that,” said Jonathan Steinberg, WisdomTree Founder and CEO.
The regulatory approval of spot Bitcoin ETFs provides a more comfortable regulatory backdrop for the digital assets sector in the US. The significance of the decision lies beyond just the liquidity that this may inject into the crypto markets due to fresh money coming in. It can also create an easy and low operational risk access point for, in particular, US RIA managed money, the gate keepers of around USD 5 trillion in assets, as well as similar wholesale investors in the US and around the world.
“It has a symbolic significance for the industry, which may still be immature but full of attractive investment opportunities,” a leading crypto fund investor in Europe told The Armchair Trader.
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Major step in digital ETF fund industry evolution
“While potential investors must carefully consider if the risk profile of a digital asset such as Bitcoin has a place in their portfolio, we see this effectiveness as a major step in the industry evolution that we’re leading – where the blockchain is redefining the way we see finance today,” Steinberg added.
The WisdomTree Bitcoin Fund (BTCW) will be listed on the CBOE BZX Exchange with an expense ratio of 0.30%, although for a six-month period commencing January 11, 2024, the entire 0.30% will be waived (which represents the sponsor’s fee) for the first $1.0 billion of the fund’s assets.
The WisdomTree Bitcoin Fund’s investment objective is to gain exposure to the price of Bitcoin, less expenses and liabilities of the Fund’s operations.
Eight crypto ETFs already offered in Europe
WisdomTree currently offers eight crypto ETPs in Europe, and concurrent with seeking to launch BTCW, has launched 13 blockchain-enabled digital funds in the US, which offer exposure to mainstream traditional asset classes with secondary recordkeeping on a blockchain.
“BTCW being declared effective by the SEC offers the nascent opportunity for investors to access bitcoin through an ETF, one of the most impactful financial innovations of our time,” said Jeremy Schwartz, WisdomTree Global Chief Investment Officer. “For investors that are willing and have the financial condition to accept more risk, but only seek to engage with this digital asset through regulated and traditional channels, this is a long-awaited opportunity in the U.S. finally coming to fruition….It cannot be denied that financial services are undergoing a major transformation; how fast we get there depends on key moments like today. WisdomTree is proud to be a part of this historic moment.”
WisdomTree said that engagement with regulators is at the centre of its “responsible DeFi” ethos, which prioritizes innovation and exploration within the digital assets ecosystem while upholding the foundational principles of transparency, integrity and protection of customer assets.
The WisdomTree Bitcoin Fund is not endorsed, indemnified or guaranteed by any regulatory agency.
