WisdomTree has introduced its spot Bitcoin exchange-traded fund (ETF) in the United States, unveiling the WisdomTree Bitcoin Fund (BTCW) on the Cboe BZX Exchange.
This development provides American investors with a convenient means to access Bitcoin’s price movements. An intriguing feature of BTCW is its zero expense ratio for the first $1.0 billion in assets.
In an official statement, WisdomTree advised potential investors to approach the fund with caution, acknowledging the inherent volatility in Bitcoin’s price.
The company emphasized that cryptocurrencies, including BTCW, are speculative investments carrying substantial risk, which could result in significant losses.
WisdomTree’s recent success follows a prior setback when the SEC rejected its application for a spot Bitcoin ETF in 2022.
BlackRock and several other asset management firms had also made similar applications.
However, the regulatory climate and growing industry interest have influenced a different outcome this time. The heightened participation of regulated financial entities has swayed the SEC toward a more favorable stance on such financial instruments.
This recent decision is expected to reshape the landscape of crypto investments in the United States.
The SEC’s historic move on Wednesday saw the approval of 11 spot Bitcoin ETFs for trading on US stock exchanges, marking a significant shift in the financial sector.
Leading this transformation is Bitwise, which plans to list its spot Bitcoin ETF on NYSE Arca, initially waiving fees for the first six months until the asset under management reaches $1 billion.
In the wake of this regulatory milestone, SEC Chief Gary Gensler emphasized that the approval pertains specifically to exchange-traded products (ETPs) holding Bitcoin, rather than endorsing a broader array of crypto asset securities.
Gensler underscored the SEC’s commitment to operating within the boundaries of the law, citing a recent court decision regarding Grayscale’s proposed ETP as an example of this approach.