Following the recent announcement by BlackRock, the world’s largest investment fund, to file an application for a Bitcoin ETF with the U.S. SEC, WisdomTree, another financial giant, is following suit by filing an application for its own ETF called “WisdomTree Bitcoin Trust“.
WisdomTree, with over $87 billion in assets under management, is hoping to gain long-awaited approval from the Securities and Exchange Commission (SEC), which has so far rejected all Bitcoin ETF applications submitted to it.
This positive news had an immediate impact on the crypto-market, driving the Bitcoin price up to $29,000.
U.S. Bitcoin ETF to attract billions of dollars in investment
It’s worth noting that WisdomTree, as a US asset manager, has already launched a Bitcoin exchange-traded product (ETP) on the SIX Swiss exchange in late 2019. However, it’s important to note that ETPs have different regulatory rules to ETFs, the latter being subject to stricter legal requirements and more rigorous regulatory controls.
BlackRock’s surprise application for a Bitcoin ETF has rekindled the interest of major financial players in Bitcoin (BTC) and cryptocurrencies in general.
It is foreseeable that other players in traditional finance will follow suit and also file applications for Bitcoin ETFs, if giant BlackRock believes that the SEC is now open to approving such applications.
The creation of Bitcoin ETFs in the U.S. would attract billions of dollars in investment from funds and financial professionals eagerly awaiting the arrival of a Bitcoin ETF on the U.S. market.
As a result, the price of Bitcoin would rise significantly, driven by strong buying demand from new investors flocking to the market.
The announcement of WisdomTree’s Bitcoin ETF application also comes at a time when banking giant Deutsche Bank is applying for a license to offer custody services for cryptocurrencies. Find out more here.
And let’s not forget the recent launch of a new crypto exchange called EDX Markets, backed by other financial giants such as Charles Schwab, Citadel Securities and Fidelity Digital Assets.