New York-based company becomes second to apply for Ether ETF approval
WisdomTree, a specialist in exchange-traded funds and exchange-traded products, has applied for an Ether (ETH) ETF in the US The 76-page form S-1 was filed with the Securities and Exchange Commission yesterday. The ETF would be called WisdomTree Ethereum Trust and if approved it will be listed on the Cboe BZX Exchange.
It is worth noting that the company also intends to list shares of its pending Bitcoin ETF on this platform. Like other ETF products, WisdomTree Ethereum Trust will seek to meet the needs of investors who do not want direct ownership of assets. A section of the presentation says:
“The Trust provides investors the opportunity to access the ether market through a traditional brokerage account without the potential barriers to entry or the risks involved in holding or transferring ether directly, acquiring it from an ether exchange, or mining it.”
The presentation is not exactly complete as WisdomTree has yet to specify what listing name the ETF or even the custodian party will be under. However, the company appointed Delaware Trust Company as the proposed trustee. The app will see updates to fill in the missing parts as time goes on.
WisdomTree’s Ether ETF app comes just a month after the company launched an Ether ETP in Europe. The launch of Ether ETP with direct support is part of the company’s expansion plans in the European market. The listed product is available on Deutsche Börse Xetra in euros. It is also available on the SIX Swiss Exchange in US dollars and Euro options.
There are now two Ether ETF applications awaiting approval from the US regulatory agency VanEck was the first fund store to apply, having done so earlier in the month. The global investment manager, whose Bitcoin ETF review was delayed until June, also intends to list its Ether ETF on the Cboe stock market.
The SEC has yet to render a final verdict on any of the dozen crypto ETFs presented, but there seems to be some hope at last. The watchdog has reportedly started reviewing two Bitcoin exchange-traded fund applications: Fidelity Investments’ Wise Origin Bitcoin Trust and the SkyBridge Capital offering. The Commission was previously reluctant to begin the process of reviewing applications already submitted, citing concerns about price manipulation.
Crypto ETF products continue to flourish in the Canadian market, where reviews and approvals have taken place for a short period.