The global exchange-traded fund (ETF) provider, WisdomTree, has made an amended Form S-1 filing for its spot Bitcoin (BTC) ETF prospectus with the United States Securities and Exchange Commission (SEC) on November 16. This update comes after WisdomTree refiled its spot Bitcoin ETF application in June 2023, proposing a rule change to list and trade shares of the WisdomTree Bitcoin Trust on the BZX Exchange by the Chicago Board Options Exchange (CBOE).
The amended prospectus states that the WisdomTree Bitcoin Trust ETF will trade under the ticker symbol BTCW, with Coinbase Custody Trust serving as the custodian holding all of the trust’s Bitcoin. Bloomberg ETF analyst James Seyffart believes that the updated Form S-1 filing means that the firm is still planning to launch an ETF and is discussing the opportunity with the SEC. He also mentioned that all issuers were expected to file one of these forms to potentially launch their ETF at some point. Another Bloomberg ETF expert, Eric Balchunas, expressed concern over the time it took for WisdomTree to amend its Form S-1 filing, suggesting that the SEC might be waiting till all S-1s are updated before issuing a second round of comments.
According to Seyffart’s data, only two spot Bitcoin ETF filers out of 12 firms in the U.S. have yet to amend their S-1 filings with the SEC: Franklin Templeton and Global X. Franklin Templeton is waiting for its first spot Bitcoin ETF deadline on Nov. 17, while Global X, another firm that hasn’t amended its S-1 filing yet, is awaiting its second spot Bitcoin ETF deadline on Nov. 21.
Historically, the SEC has delayed decisions on ETF applications, and some analysts anticipate that the SEC might issue another round of delays on decisions regarding the upcoming deadlines. However, Seyffart maintains his perspective of the 90% likelihood of the SEC approving a spot Bitcoin ETF before the end of January 2024, regardless of potential delays.
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Overall, the filing of amended prospectuses for Bitcoin ETFs indicates the ongoing efforts of firms like WisdomTree to enter the cryptocurrency market and provide investment products to their clients. The interest in ETFs based on cryptocurrencies like Bitcoin continues to grow as more companies seek to offer these products to investors in the traditional financial markets.
As of November 17, teams at Franklin Templeton and Global X are closely watching the SEC’s response to their respective applications as they await their deadlines. The expectation for these firms is that the SEC will carefully review their applications and take the necessary time to ensure that the products meet the regulatory requirements.
The interest in Bitcoin-based ETFs is part of a larger trend of crypto adoption by traditional financial institutions. Institutional investors, as well as retail investors, have shown increasing appetite for exposure to digital assets like Bitcoin. The regulatory landscape for these products is evolving, and the SEC’s decisions will play an essential role in shaping the future of Bitcoin and other cryptocurrency-related investment products.
In conclusion, the continued filing and amendment of Bitcoin ETF prospectuses by firms like WisdomTree demonstrate the ongoing interest and effort in bringing cryptocurrency-based investment products to the traditional financial markets. These developments indicate that the industry sees significant potential in offering Bitcoin and cryptocurrency-related ETFs to investors. As the regulatory landscape continues to evolve, market participants will keep a close eye on the SEC’s decisions regarding these applications.
