Fund Manager Wisdomtree Files With SEC to List Ethereum ETF on Cboe BZX
The financial asset manager, Wisdomtree, is now the second institution to file for an ethereum-based exchange-traded fund (ETF), following Vaneckâs recent filing on May 7. The recently filed S-1 with the U.S. Securities and Exchange Commission (SEC) says the fundâs âinvestment objective is to gain exposure to the price of ether.â
Wisdomtree Follows Vaneckâs Lead and Files for an Ethereum-Based ETF
On Thursday, Wisdomtree revealed it wants to list an ether-based ETF on Cboe BZX Exchange, according to the firmâs latest S-1 filing. The SEC must approve the ETF and if the regulator does, investors can purchase Wisdomtreeâs ether trust shares via regulated brokerage services.
The prospectus describes ether as âa digital asset that is not issued by any government, bank or central organization, and is the second-largest cryptocurrency by market capitalization behind bitcoin.â The WisdomTree Ethereum Trust is a Delaware statutory trust, invoked on March 8, 2021. The Wisdomtree ETH-based ETFâs sole objective is to:
Gain exposure to the price of ether, less expenses, and liabilities of the Trustâs operations. In seeking to achieve its investment objective, the Trust will hold ether and will value its Shares daily based on the [CF Ether-Dollar US Settlement Price], which is an independently calculated value based on an aggregation of executed trade flow of major ether spot exchanges.
Ethereum Trust Will Follow Emerging Growth Company Reporting
In recent times, Wisdomtreeâs bitcoin (BTC)-based exchange-traded fund was being reviewed by the U.S. financial regulator, and the company recently launched an ether-based exchange-traded product (ETP). Wisdomtreeâs ethereum ETPs are listed on Deutsche Boerseâs Xetra and Switzerlandâs Swiss Stock Exchange (SIX).
Wisdomtreeâs S-1 filed on Thursday says the ether trust will qualify as an âemerging growth company,â and leverage the JOBS Act reduced reporting requirements. For instance, the trust doesnât have to present an auditorâs attestation report or comply with 2012âs Public Company Accounting Oversight Board guidelines, unless the SEC disapproves of these actions.
âThe Trust will cease to be an âemerging growth companyâ upon the earliest of it having $1.0 billion or more in annual revenues,â Wisdomtreeâs ether ETF filing notes.
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