WisdomTree (WT) Joins Others in Filing for Spot Bitcoin
WisdomTree, Inc. WT has filed an application with the U.S. Securities and Exchange Commission (“SEC”) to start a spot bitcoin exchange traded fund (“ETF”). Per the filing, this fund will be listed on Cboe BZX Exchange under the ticker BTCW.
In October 2022, WT’s application to launch The WisdomTree Bitcoin Trust was not approved by SEC on account of insufficient investor protection.
WisdomTree’s move to offer a spot bitcoin ETF comes less than a week after BlackRock, Inc.’s BLK application regarding the same. If applications are approved, it will help the companies to expand their partnership with battered crypto exchange Coinbase.
The application for bitcoin ETF comes at a time when the cryptocurrency industry is battling criticism by SEC over alleged securities law violation.
Earlier this month, SEC sued Coinbase and the world’s largest crypto exchange, Binance, alleging security violations.
SEC has now proposed new custody rules that will place additional responsibilities on asset managers to make sure that customers’ assets are kept in properly segregated accounts.
There is no guarantee that WT’s application will be approved by SEC. SEC has already rejected several proposals by other asset managers on the belief that the tokens trade on unregulated exchanges are subjected to surveillance and manipulation risks.
Last year, SEC rejected Grayscale Investment LLC’s application to convert its flagship spot Grayscale Bitcoin Trust into an ETF. Post rejection, Grayscale sued the regulator, claiming that it was acting arbitrarily in rejecting applications for spot bitcoin ETFs when it had previously approved bitcoin futures ETFs.
Over the past six months, shares of WisdomTree have gained 29.4% compared with growth of 7.4% recorded by the industry.
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Currently, WisdomTree carries a Zacks Rank #2 (Buy).
A couple of other top-ranked stocks from the same space are Grupo Financiero Banorte GBOOY and Midwest Holding MDWT.
GBOOY currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for current-year earnings has been revised 5.64% upward over the past 60 days. Its share price has increased 9.1% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
MDWT presently flaunts a Zacks Rank of 1. The Zacks Consensus Estimate for current-year earnings has been revised significantly upward over the past 60 days. Its share price has increased significantly in the past six months.
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