Wisdomtree has filed for a commodity fund with 5% exposure to
bitcoin, in a fresh attempt to bring an exchange-traded fund (ETF)
backed by the benchmark cryptocurrency to the market.
According to a filing
with the U.S. Securities and Exchange Commission (SEC), the fund is
targeting to invest mainly in energy, industrial metals, precious
metals, and agriculture commodities primarily through futures contracts.
If approved, the Wisdomtree Enhanced Commodity Strategy Fund will also put up to 5% of its net assets in cash-settled bitcoin (BTC) futures traded on the Chicago Mercantile Exchange (CME), the world’s third-largest regulated BTC futures market.
While that makes BTC
a small fraction of the fund’s total investment portfolio, it can still
make a significant impact within a market desperate for a product that
helps retail investors gain bitcoin exposure, without actually owning
any coins.
“The fund will not invest in bitcoin directly,” notes
the filing of June 16. Wisdomtree is an asset management company
operating out of New York. It manages more than $60 billion worth of
assets.
The firm’s new hybrid application will once again test the
SEC’s appetite for a bitcoin-backed exchange-traded fund. Until now,
the regulator has repeatedly rejected pure bitcoin ETF proposals from
Bitwise, Gemini and Wilshire Phoenix citing possible manipulation of the
bitcoin market, custody issues and a lack of central control among
other factors.
Meanwhile, institutional interest in BTC
continues to grow, with demand for CME bitcoin futures and the open
interest reaching a record high of nearly $500 million in May.
Billionaire fund manager Paul Tudor Jones last month also expressed
interest in bitcoin futures, claiming to have 2% of his assets in the
cryptocurrency.
source link : https://news.bitcoin.com/wisdomtree-files-etf-with-5-bitcoin-exposure-amid-sec-resistance/
