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WisdomTree’s Spot Bitcoin ETF Gains Traction with Revised Filing

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WisdomTree, the asset management firm, has resubmitted its revised prospectus (S-1 filing) for a spot Bitcoin Exchange Traded Fund (ETF) to the U.S. Securities and Exchange Commission (SEC). This resubmission is a crucial step in the process that all issuers of Exchange Traded Products must undergo before the launch of their spot Bitcoin ETFs.

WisdomTree’s Determination for Spot Bitcoin ETF

Bloomberg ETF analyst James Seyffart share via X post, WisdomTree remains committed to launching a spot Bitcoin ETF and is actively engaged in discussions with the SEC. The resubmission of the S-1 filing reflects the ongoing efforts and dialogue between WisdomTree and the regulatory body.

Seyffart clarified the nature of the S-1/Prospectus amendment, stating:

This just means WisdomTree is still planning to launch an ETF and is in talks with the SEC’s corp fin division. All issuers were expected to file one of these to potentially launch their ETF at some point. Just a step in the process. Nothing critical.

The custodian for WisdomTree’s spot Bitcoin ETF product is Coinbase, a leading cryptocurrency exchange. Additionally, the benchmark for the ETF is the CME CF Bitcoin Reference Rate – New York Variant, according to insights provided by Bloomberg analyst Henry Jim.

WisdomTree’s engagement with the SEC involves four key filings, according to Jim, indicating the comprehensive approach taken by the asset management company in navigating the regulatory landscape.

Market participants are currently on the edge of their seats, eagerly awaiting the SEC’s decision on Franklin Templeton’s Bitcoin ETF application. The deadline for this decision is November 17, adding a sense of urgency and anticipation to the crypto investment community. Notably, the regulator has opted to defer decisions on applications from Hashdex and Grayscale, pushing their potential approval or rejection to 2024.

As the crypto industry continues to seek legitimacy and acceptance within traditional financial markets, the ongoing developments surrounding WisdomTree’s spot Bitcoin ETF serve as a barometer for the evolving relationship between cryptocurrency and regulatory bodies.

Related Reading | Ex-Bithumb Chairman Faces 8 Years for 110B Won Fraud

SEC Extends ETF Limbo: Hashdex’s Bitcoin ETF Conversion Deferred

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In a recent development, the United States Securities and Exchange Commission (SEC) has once again deferred a crucial decision on whether to greenlight the first-ever U.S. exchange-traded fund (ETF) directly investing in Bitcoin. The delay comes amidst increasing speculation within the crypto community that approval might be imminent.

Hashdex’s ETF Conversion Deferred

The SEC’s latest postponement pertains to a filing from Hashdex, seeking to convert its existing Bitcoin futures ETF into a spot fund. A document released on the SEC’s official website on Wednesday confirmed the regulatory body’s decision to defer the matter.

Hashdex’s application, initially submitted in September, had a deadline of November 17 for the SEC’s response. However, the commission has chosen to push the decision into 2024, a tactic previously employed with other ETF applicants.

James Seyffart, an ETF analyst with Bloomberg Intelligence, commented on the delay, stating, “It’s really not that surprising; the SEC goes early on decisions like this fairly frequently.” The SEC’s action was not limited to Hashdex, as it also deferred Grayscale’s attempt to launch a new Ether futures ETF.

In 2023, over a dozen companies have filed applications to launch spot Bitcoin ETFs, with several others seeking approval for similar products tied to Ethereum, the second-largest cryptocurrency by market capitalization.

As of now, the SEC has not hinted at how it might ultimately rule on the recent wave of ETF applicants. Past rejections raised concerns about the susceptibility of Bitcoin to market manipulation and the absence of surveillance-sharing agreements, among other issues.

However, applicants argue that these concerns have been adequately addressed, especially in the wake of the approval of Bitcoin futures ETFs. This perspective aligns with a recent opinion from an appeals court earlier this year. Despite this, the SEC has continued to postpone final decisions on these applications.

Interestingly, the market’s response to the latest delays has been somewhat unexpected. The price of Bitcoin (BTC) appears unaffected, surging by more than 5% this afternoon and reaching $37,500.

BTC 1D graph coinmarketcap 3 1
Source: CoinMarketcap

While the SEC’s decisions continue to loom large over the crypto landscape, market participants are left in anticipation, eagerly awaiting a resolution that could significantly impact the future of cryptocurrency investment products in the U.S.

Related Reading | ETH/BTC Analysis Unveils Market Trends & Potential ETF Impacts