The WisdomTree Trust has launched a stock exchange investment fund (ETF) launch project that invests in the growing Bitcoin futures market.
According to the report first reported by CoinDesk, the New York City-based asset management company up to 5 percent of the Chicago Mercantile Exchange’s Bitcoin contracts (CME) as shown in documents published by the U.S. Securities and Exchange Commission (SEC). applied for an investment-grade ETF.
In the past, ETF applications that invested in both Bitcoin and treasury bills, along with only Bitcoin ETF, were rejected. SEC, as the reasons for rejecting these applications; The size of the Bitcoin market, its potential to be manipulated, the guarantee of security in Bitcoin retention showed the lack of sharing agreements between a large Bitcoin market and a regulated exchange.
If the application is approved, the ‘WisdomTree Enhanced Commodity Strategy Fund’ will invest the rest of its net assets into energy, industrial metals, precious metals and agricultural assets. So Bitcoin will have a small slice of the cake.
Steady growth in Bitcoin futures
However, all these developments can be seen as a sign. CME’s cash-settled Bitcoin futures market has been growing steadily over the past few months. May saw record-breaking days for open positions at CME. This period, in which institutional investors such as Paul Tudor Jones was interested in Bitcoin futures, also coincided with a time of serious rises. No explanation was made from the WisdomTree spokespersons.
This policy may also be related to seeing Bitcoin as an opportunity investment for a fund that is usually in commodity markets. Commodity market movements are not directly correlated with indices, but some experts comment that Bitcoin, which is traded as a commodity, follows the market.
Not foreign to cryptocurrencies
WisdomTree is not a foreign company to cryptocurrencies. Corporate Strategy Director William Peck said earlier that he sees digital assets as a model of the company’s natural growth strategy. The $ 63 billion asset management company developed a regulated stable cryptocurrency to the US market and issued a Bitcoin ETP on Switzerland’s SIX exchange last year.
The WisdomTree Enhanced Commodity Strategy Fund looks like the company’s first ‘influx’ to Bitcoin products in the U.S.