The tree of wisdom has archived an amendment to its Bitcoin exchange-traded fund (ETF) application.
This amendment is a routine but essential step in the multi-stage ETF approval process, according to leading ETF expert James Seyffart.
This means that Wisdom Tree is actively participating in discussions with the SEC’s Division of Corporate Finance. WisdomTree is not alone in its search for a Bitcoin ETF.
Other update proposals
Recently, other major industry players have introduced similar amendments.
Bitwise, for example, resubmitted its amended proposal in response to comments and queries. Following suit, GlobalXETFs and Fidelity filed their amended Bitcoin ETF prospectuses, and BlackRock filed a new filing shortly after.
A “spot” Bitcoin ETF, which is based on the current (“spot”) price of Bitcoin, is especially attractive. It would track the actual price of Bitcoin directly, rather than relying on futures contracts, as other proposed Bitcoin ETFs do. This direct tracking makes a Bitcoin ETF more attractive to those who want a purer form of Bitcoin exposure. This is why investment giants like BlackRock are actively pursuing such a product.
SEC approval delay
However, the path to ETF approval is plagued by delays and regulatory hurdles. As U.Today reported, recently postponed decisions on several Bitcoin ETF applications, including those from Hashdex, Franklin, and GlobalX. These delays are not unusual in the rigorous approval process for this type of financial products.
Despite these setbacks, analysts like Seyffart remain optimistic about the future of these ETFs. Seyffart predicts a “pretty good chance” of approval with a 90% chance by January 10, 2024.
