WisdomTree has applied for the Ethereum ETF.
New York-based financial services firm WisdomTree has applied to the American securities regulator to get the Ethereum ETF approved.
Second Ethereum ETF Implementation
WisdomTree submitted a Form S-1 for securities registration to the Securities and Exchange Commission (SEC) to list WisdomTree Ethereum Trust shares on the Cboe BZX Exchange.
The shares will enable to use ETH based on the CF Ether-Dollar US Settlement Price provided by CME. The asset management fund also has a pending Bitcoin ETF application.
The start of Ethereum futures on the CME exchange earlier this year was a clear indication of ETH being accepted as corporate. Therefore, WisdomTree’s ETF implementation should not come as a surprise. However, there is a difference between access to the futures market and the Ethereum ETF. Regulators have shown concern about the negative impact of crypto ETFs on the retail market in the past, so applications for Bitcoin ETFs have often been delayed. At the same time, they can limit retail traders from regulated futures platforms like Cboe and CME.
Eight applications have been submitted to the SEC since December 2020. These include VanEck, NYDIG, CBOE, Wisdom Tree, Valkyrie, Fidelity, SkyBridge / First Advisors and Simplify’s stock-Bitcoin ETF.
So far, the regulator has only approved Simplification. It went live on Monday with limited exposure; investors can trade Bitcoin with 15% and the remaining 85% stocks.
Yesterday, the SEC also launched the review process for SkyBridge and Fidelity applications and launched a 45-day formal review period to approve, deny or request further extensions.
While WisdomTree’s application is a positive step for the market, Ethereum ETF can take years to be approved. The first Bitcoin application was made in 2013 by the Winklevoss brothers.
WisdomTree is the second company to register for ETH securities. VanEck applied earlier this month.