By
Steve Muchoki
April 19th, 2024
The SEC recently approved a slew of blockchain-focused funds for WisdomTree but continues to deny spot Bitcoin ETFs.
The Securities and Exchange Commission (SEC) has approved nine more blockchain-enabled funds from WisdomTree (NYSE: WT). This approval lends itself to WisdomTree’s overarching goal of further integrating blockchain tech to enhance investor experience. Announcing the SEC’s approval in a blog post, the $82 billion asset management platform also stated that the nine digital funds offer varied exposure. These include asset classes such as commodities, equities, and floating-rate treasuries.
WisdomTree Execs Weigh In on Latest SEC Funds Approval
Will Peck, WisdomTree’s Head of Digital Assets, commented on the asset manager’s latest blockchain-oriented initiative. According to him, “these nine new digital funds exhibit the type of curated experience we expect to be able to provide to WisdomTree Prime users, all bringing mainstream assets into the evolving digital ecosystem.”
Furthermore, Peck added:
“We believe that blockchain-enabled finance has the potential to improve the investor experience through enhanced liquidity, transparency, and standardization, which we aim to achieve over time.”
The funds, which seek to close the gap between traditional and digital finance, will launch on the WisdomTree Prime mobile app. Reports also give the expected launch date as the first quarter of 2023.
WisdomTree President and COO Jarett Lilien sees the launch as a strategic move that leverages the power of crypto. According to Lilien, all financial assets would eventually crossover to blockchain infrastructure, and this represents “a significant step in that direction.” He also touted the novelty of bringing mainstream exposures, including fixed income and equities, into the digital world via tokenized assets. With the launch of the funds, Lilien sees WisdomTree assume a leading role in the global evolution of financial services.
WisdomTree among Prominent Asset Managers Clamoring for Spot Bitcoin ETFs
The latest SEC approval for the WisdomTree funds comes three months after the regulator approved the firm’s first digital fund – the WisdomTree Short-Term Treasury Digital Fund (WTSYX). Like Grayscale Investments, WisdomTree has also been pushing to launch an ETF that offers Bitcoin (BTC) spot price exposure since early 2021. However, WisdomTree’s exchange-traded fund applications have also been met with rejection by the SEC on multiple occasions. The Commission repeatedly cited general concerns regarding fraud and market manipulation in Bitcoin trading markets.
The SEC has not yet approved a spot Bitcoin exchange-traded fund. This fact prevails amid repeated calls and progressive actions for comprehensive oversight over the digital currency space.
Grayscale is currently locked in a lawsuit with the SEC over the regulator’s refusal to allow spot Bitcoin ETFs. As part of its grievance against the SEC, Grayscale argued that the regulator practiced an uneven application of the law regarding Bitcoin futures ETFs.
On Monday, the prominent digital asset manager acknowledged the first filed legal brief from the securities regulator.
WisdomTree
WisdomTree Investments is a New York-based ETF and exchange-traded product (ETP) sponsor and asset manager. The company offers a diversified suite of ETPs, models, and solutions.
As a leading asset manager, WisdomTree has more than $81 billion in assets under management (AUM) globally.