The U.S. Securities and Exchange Commission (SEC) is soliciting public feedback on a proposed rule change that would allow WisdomTree’s Bitcoin Fund (BTCW) to facilitate in-kind creations and redemptions. This request for comment, outlined in a Monday release from the agency, marks another instance of the SEC seeking input on such mechanisms for cryptocurrency exchange-traded funds (ETFs), The Block reported.
The move follows previous delays and requests for feedback concerning in-kind creation and redemption rule-making decisions for other prominent cryptocurrency ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), the VanEck Bitcoin Trust, and the VanEck Ethereum Trust, as reported by The Block.
The SEC is inviting individuals to submit written data, views, or arguments on whether the proposed rule change for the WisdomTree Bitcoin Fund should be approved or disapproved. The deadline for submissions is within 21 days of the announcement.
“Institution of proceedings is appropriate at this time in view of the legal and policy issues raised by the proposed rule change,” the SEC stated. The agency emphasized that initiating these proceedings does not imply any pre-determined conclusions, but rather aims to gather comprehensive public input on the proposed rule change.
The WisdomTree Bitcoin Fund (BTCW) is a spot Bitcoin ETF that received initial approval in January 2024. In-kind redemptions would allow investors to redeem their shares in the fund by receiving the underlying asset, Bitcoin, directly, rather than receiving cash.
