Several asset managers in the United States have sought the blessing of the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin exchange-traded fund (ETF). However, companies like WisdomTree, Grayscale and One River Asset Management only got the SEC’s rejection.
However, the SEC’s denial did not deter WisdomTree as a June 21 Bloomberg report revealed that the asset manager has filed another filing with the SEC to launch its spot BTC ETF. The company’s filing comes a few days after BlackRock filed its own filing, seeking approval for the same product.
WisdomTree is reapplying for Spot BTC ETF approval despite previous rejections
WisdomTree Investments had previously proposed launching a spot BTC ETF with the SEC in 2021. However, the commission rejected the company’s application in December 2021 after a lengthy delay in taking action.
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After the denial, WisdomTree, tied the score A rivermade changes to its proposal and resubmitted it to the SEC. However, in March 2022, the commission announced designating a longer period of time to decide on the proposed rule change.
It noted that it needed ample time to study the proposed change, including the accompanying comments. You’d expect WisdomTree to surrender after the lengthy delay and denial, but the latest development suggests otherwise.
Tuesday’s filing revealed that the asset manager’s Bitcoin Trust, if approved, would be listed on the Cboe BZX Exchange under the name BTCW.
The SEC has previously refused to allow such Bitcoin-based investment products, rejecting or ignoring applications from companies such as Grayscale, One River, and VanEck.
It cited fraud and BTC spot market manipulation as reasons for not approving the spot-based BTC ETFs. Instead, the SEC allowed futures-based BTC ETFs.
Notably, the manager of the largest Bitcoin Trust fund, Grayscale, had filed with the SEC to convert its private spot Bitcoin trust into spot ETF. But the committee rejected the move, infuriating the company to sue for refusing the application.
BlackRock raises hope in spot BTC approval
Last week, the largest US asset manager, BlackRock applied for SEC approval to launch iShares Bitcoin Trust spot ETF. It appears BlackRock’s filing has restored hope among previous applicants.
Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence, said: BlackRock’s mock BTC ETF application “has restored hope of approval thanks to the company’s size, stature and reputation.” Interestingly, some proponents of Bitcoin have seen as an advantage BlackRock’s political prosperity and power in the United States.
On June 12 tweetone notable Bitcoin proponent, Paine, while encouraging BlackRock, expressed his optimism that the company would receive SEC approval to launch its spot BTC ETF.
Paine said:
BlackRock is probably the most politically powerful and connected entity in the United States. I bet this place BTC ETF will be approved.
He also said the SEC delayed approving other firms’ applications to fend off “undeserved forerunners” and “late the anointed [BlackRock] have their right.”
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