By
Temitope Olatunji
April 26th, 2024
WisdomTree is the second to apply for an ETH ETF. Asset manager VanEck had filed an application to create an Ether-focused exchange-traded fund earlier this month.
US-based fund shop WisdomTree has officially filed for an Ether-based exchange-traded fund at the office of the Securities and Exchange Commission (SEC), documents at the commission have revealed. The aim of the proposal is to enable WisdomTree Ethereum Trust to get listed on Cboe BZX Exchange as it also plans to list shares of the proposed Bitcoin ETF.
Delaware Trust Company was named the proposed trustee of the proposal which is expected to continue to be a subject of review.
If approved, the filing noted that the move means investors can now indirectly invest in a portfolio comprised of Ether through a traditional brokerage account, as the shares are listed on the Exchange.
“The Trust provides investors with the opportunity to access the market for ether through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring ether directly, acquiring it from an ether exchange, or mining it,” the filing read in part.
WisdomTree is the second to apply for an ETH ETF. Asset manager VanEck had filed an application to create an Ether-focused exchange-traded fund earlier this month. The move by VanEck was made months after it renewed its efforts to create a Bitcoin ETF. The SEC recently extended its review period for that proposed product, a development that mirrored how the securities regulator has weighed Bitcoin-centric ETFs in the past.
Like WisdomTree, it also plans to list on Cboe and have Bitcoin ETF proposals before the regulator that they also plan to list on Cboe.
However, the SEC has yet to approve any crypto ETF offering, and many Bitcoin ETFs have been stopped short of approval by the agency. The commission has always cited the need to protect investor funds from the inherent volatility of the crypto market as the reason for its reluctance.
However, in Canada, regulators have moved much more swiftly on both in the approval process. Three ether (ETH) exchange-traded funds (ETFs) began trading on the Toronto Stock Exchange on Tuesday. Interestingly, ETFs in the North American country have enjoyed considerable success within the short period of their launch.
The ETFs are by Canada-based asset managers: Purpose Investments, CI Global Asset Management, and Evolve Funds Group. All three ETFs – the Purpose Ether ETF, the CI Galaxy Ethereum ETF, and the Evolve Ether ETH – provide exposure to the price of Ethereum’s native ETH without the need to possess the crypto asset.