WisdomTree Investments, a New York-based provider of exchange-traded funds (ETFs), has applied for an ETF that would invest up to 5% of its portfolio in cash-settled Bitcoin futures contracts (BTCs) offered by the Chicago Mercantile Exchange (CME).
The application, filed on June 16, states that the proposed fund will invest in the futures markets of four commodity sectors covering agriculture, industrial metals, precious metals and energy.
Retail demand may force the SEC to approve a Bitcoin ETF
No direct investment will be made in the underlying physical assets.
Crypt-related ETFs have little luck among regulators
Although regulators have so far rejected Bitcoin’s ETF applications, WisdomTree expects its „WisdomTree Enhanced Commodity Strategy Fund“ to be approved because of its small allocation to a product that is regulated by the SEC.
However, the fund’s preference for futures contracts over physical assets may not sit well with the regulator, following the dramatic collapse of the U.S. oil markets that caused prices to plummet during April.
Hester Peirce’s latest effort at the SEC’s rejection of Wilshire Phoenix’s application for a BTC ETF
Although analysts express doubts about the likelihood of WisdomTree’s fund being approved, the inclusion of Bitcoin futures alongside oil, livestock, coffee and aluminum contracts illustrates the growing interest in cryptomonics by many fund managers who focus on traditional asset classes.
Traditional asset managers
In May, Kingdom Trust, a regulated custodian that manages more than USD 13 billion in assets, launched a retirement account to support Bitcoin and traditional assets.
Wilshire Phoenix criticizes the SEC for rejecting Bitcoin ETF
Speaking to Cointelegraph, Kingdom Trust CEO Ryan Radloff predicted that a growing share of the $28 billion US retirement market will be opened up to cryptoactives in the coming years:
„According to our estimates, there are 7.1 million Americans who own Bitcoin, have a retirement account, but currently do not have the option to keep Bitcoin in their retirement account with their other assets,“ he said.