After more than a decade of back and forth, they’re finally here. Spot Bitcoin ETFs have arrived following the SEC’s approval of more than ten different strategies. WisdomTree Investments is one of those firms to have launched a fund, with the WisdomTree Bitcoin Fund (BTCW) arriving on the scene. The strategy looks to set itself apart from rival spot Bitcoin strategies and may be an appealing option for curious investors.
See more: ETF of the Week: WisdomTree Japan Hedged Equity ETF (DXJ)
BTCW is listed on the CBOE BZX Exchange. Though it does charge 30 basis points, the strategy will waive that fee for six months for the first $1 billion in assets. BTCW joins the firm’s existing blockchain-related funds. WisdomTree offers more than ten blockchain-enabled funds in the U.S. already, with eight crypto ETPs available in Europe.
“While potential investors must carefully consider if the risk profile of a digital asset such as bitcoin has a place in their portfolio, we see this effectiveness as a major step in the industry evolution that we’re leading – where the blockchain is redefining the way we see finance today,” WisdomTree Founder and CEO Jonathan Steinberg said in a statement.
“BTCW being declared effective by the SEC offers the nascent opportunity for investors to access bitcoin through an ETF, one of the most impactful financial innovations of our time. For investors that are willing and have the financial condition to accept more risk, but only seek to engage with this digital asset through regulated and traditional channels, this is a long-awaited opportunity in the U.S. finally coming to fruition,” said Jeremy Schwartz, WisdomTree Global CIO.
Eyeing Spot Bitcoin ETFs
Why look to Bitcoin? Bitcoin allows value to be transmitted across the world without needing an intermediary. In doing so, Bitcoin could offer potent cost and time savings. What’s more, Bitcoin offers a long-term place to store value outside of the tumult of central banking systems.
A spot Bitcoin ETF offers the benefits of the ETF wrapper like transparency and standardization. That can be a big benefit to investing in crypto, with Bitcoin perhaps more accessible than ever. Add in ETF liquidity, and BTCW’s ability to place digital assets in “cold storage” in an ETF wrapper, too. That can make an intriguing case for investing in the spot Bitcoin ETF.
For more news, information, and analysis, visit the Modern Alpha Channel.
