Asset Management Firm, WisdomTree, has become the second to file for an Ethereum Exchange Traded Fund. This is according to the S-1 application- it filed with the US Securities and Exchange Commission (SEC). If approved, ETH investments would become easily available to retailers. They can buy into the fund without holding Ethereum, which is the platform’s native token.
VanEck is the first firm to apply for an Ethereum Exchange Traded Fund. This move follows after it applied for a BTC ETF as well. On the recent development, the WisdomTree Trust will be listed on the Cboe BZX Exchange.
The filing for the ETF by WisdomTree has it that investors can indirectly invest in a portfolio that contains Ether. The investment is done through a traditional brokerage account and will protect investors from the risks associated with directly acquiring Ether.
US SEC Still Reluctant to Approve an ETF
Both WisdomTree and VanEck have earlier applied for a BTC ETF with the SEC before adding ETH to the files. The SEC, however, is yet to approve any of the applications for either Bitcoin or Ethereum. The WisdomTree filing might serve as a parent case as more applications are set to be filed to the SEC.
Canadian regulatory bodies on the other hand are more efficient in the approval of ETFs. Investors in the country have the liberty to choose between several Bitcoin or Ethereum Exchange Traded Funds. The swift approvals of ETFs in Canada kick-started after the regulators indicated their readiness for Bitcoin ETFs.
The Chicago Board Options Exchange (CBOE) happens to be a favourite listing platform for prospective ETF applicants. Fidelity’s Wise Origin closely followed VanEck to seek for a BTC ETF with CBOE as a partner.