News from the Bitcoin ETF sector says that investment management company WisdomTree has resubmitted an amended proposal for its Bitcoin Exchange-Traded Fund (ETF), a move the company said is a calculated attempt to negotiate the regulatory environment and capitalize on the growing cryptocurrency market.
With this move, WisdomTree joins a group of financial institutions eagerly awaiting approval from the Securities and Exchange Commission (SEC) regarding the legality of their individual cryptocurrency Exchange Traded Funds (ETFs).
WisdomTree’s revised proposal, which emphasizes a “spot” Bitcoin ETF, is considered significant. The spot ETFs, which get their value from Bitcoin futures contracts, are futures-based, they would hold the actual asset in their hands.
Explaining the current trend, Helen Partz with Cointelegraph wrote that WisdomTree’s strategic vision of the changing dynamics of the cryptocurrency industry is reflected in the move toward a spot Bitcoin ETF. The investment management company used a spot ETF to express worries about market manipulation and volatility, which are frequently connected to futures-based products.
Banks To Customize WisdomTree Spot ETF, SEC Receives More Application
The decision by WisdomTree to submit a revised proposal coincides with heightened regulatory scrutiny and increased competition in the cryptocurrency exchange-traded fund (ETF) market. Several significant financial institutions have recently submitted similar changes to their Bitcoin ETF proposals, indicating a concerted effort to gain traction.
Analysis of the CryptoPolitan platform by Lacton Muriuki says that the regulatory body has carefully considered each proposal to find a balance between protecting investors and promoting innovation. Muriuki says that the industry believes that the approval of a Bitcoin ETF could be a major milestone, offering mainstream investors a regulated and easily accessible entry point into the world of cryptocurrencies, amid the rigorous nature of the process.
WisdomTree’s calculated move to create a spot Bitcoin ETF fits the larger pattern of banks customizing their products to fit changing consumer demands. This latest update is coming at a time when the company (WisdomTree) reapplied its spot BTC ETF sometime in June this year. In its application, the company had proposed a change of rules, requesting to trade WisdomTree Bitcoin Trust shares on the BZX Exchange platform using the Chicago Board Options Exchange (CBOE).
Market Watchers Keeps Watch, Seyffart James Comments
Recent observation shows that market watchers are keeping a close eye on developments as the cryptocurrency industry waits for regulatory decisions regarding these ETF proposals, as they may impact the dynamics of the Bitcoin market and its wider acceptability. In another development, Bitwise, an asset management company, has also resubmitted its amended application.
This is in response to the most recent inquiries and feedback it got so far. Seyffart James, a popular ETF expert, has predicted that the WisdomTree application will be approved by the 10th of January, 2024. James also said that the rising number of ETF applications explains cryptocurrency investors’ growing demand for BTC ETF.
Meanwhile, earlier Bitcoin ETF applicants like GlobalX, Hashdex, and Franklin have all faced deliberate delays by the SEC because they need more time to assess the current market situation. Latest industry report shows that the delay aligns with the meticulous regulatory guidelines for these investment instruments. Meanwhile, cryptocurrency market watchers and stakeholders are curious yet optimistic about the possible approval of the BTC ETF by January 2024.