- Per the reports published by the US Securities and Exchange Commission, WisdomTree Trust has filed for an ETF.
- If approved, they will invest 5 percent of their net assets in the Chicago Mercantile Exchange’s (CME) bitcoin futures contracts.
This Tuesday, as per the reports published by the US Securities and Exchange Commission, WisdomTree Trust has filed for an ETF. If approved, they will invest 5 percent of their net assets in the Chicago Mercantile Exchange’s (CME) bitcoin futures contracts.
An exchange-traded fund or ETFs are investment funds that track the performance of a particular asset or group of assets. The low pricing, tax efficiency, and stock-like features attract many investors. Additionally, It owns assets, and they divide the ownership of these assets to the shareholders.
The US Securities and Exchange Commission has taken into account the growth of the Bitcoin market, the potential to which it is manipulated, the custody of the Bitcoin, and weak surveillance over the sharing agreements between a scalable bitcoin market and a Bitcoin exchange.
Institutional Interest in Bitcoin Rising
WisdomTree is a New York-based financial asset management firm. Its specializations include Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs). The first ETF launched in 2006 by WisdomTree, and since then, it has become the largest ETF producer in the United States. Also listed in the NASDAQ under the ticker symbol WETF.
In 2019, the management sector of the WisdomTree assets announced the launch of a new investment product. They would offer Exchange Traded Products (ETPs), which can track the value of Bitcoin. This would provide investors the exposure of Bitcoin without having to invest in digital assets. Moreover, this year, in January, they led to the funding of 17.6 million US Dollars for a security token compliance startup called, ‘Securrency.’
If the ETF approved, then the WisdomTree Enhanced Commodity Strategy Fund would invest all its remaining funds, including assets meaning that Bitcoin would constitute only a small percentage of the investment. Over the past few years, Chicago Mercantile Exchange’s bitcoin futures contracts have been growing considerably. Thus, this makes Bitcoin a more generalized investment opportunity for any fund which aimed at seeking the commodity market at large.
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