- SEC delays decision on WisdomTree’s in-kind model for spot Bitcoin ETF until early June.
- WisdomTree expands crypto ETP offerings across major networks and indices.
The latest decision from the United States Securities and Exchange Commission (SEC) has again caught the attention of crypto market players. This time, the regulator has chosen to delay approval of a proposal from Cboe BZX that wants to introduce an “in-kind” creation and redemption scheme for WisdomTree’s Bitcoin spot ETF product.
In fact, this scheme is considered to be able to provide better tax efficiency and minimize transaction costs. Even so, the SEC has not given the green light and will only provide a final decision no later than June 3.
JUST IN: THE SEC HAS POSTPONED ITS DECISION ON CBOE BZX’S PROPOSAL TO ALLOW IN-KIND CREATIONS FOR THE WISDOMTREE SPOT $BTC ETF.
THE SEC WILL MAKE A FINAL RULING BY JUNE 3RD.
Source: @Cointelegraph https://t.co/4qA0jYWuXw pic.twitter.com/oHtstrxlzL
— Mario Nawfal’s Roundtable (@RoundtableSpace) April 15, 2025
The description of “in-kind creation” is actually quite simple. Imagine you can directly exchange Bitcoin for ETF shares without having to go through the buying and selling process on the traditional money market. In the investment world, this can be considered like exchanging one basket of fresh fruit directly for another basket, without having to exchange it for money first.
This method is considered to be able to cut costs while reducing the potential impact of taxes. However, it seems that the SEC is still being careful. It makes sense, because a model like this does have more complex technical and regulatory implications.
WisdomTree Steps Up Its Crypto Game Across Networks
On the other hand, WisdomTree is not a new player in crypto-based products. They are even quite aggressive in expanding their expansion in various ecosystems.
CNF previously reported that WisdomTree Connect, which was initially only available on Ethereum, has now reached the Arbitrum, Avalanche, Base, and OP Mainnet networks from Optimism. The goal is clear, to facilitate the integration of digital assets with the wider financial world.
Furthermore, since last February they have also launched a new ETP that follows the CoinDesk 20 index, consisting of the 20 largest digital assets. This index has recorded a return of more than 76% in just one year, with a trading volume exceeding $14 billion.
Not only that, last March WisdomTree also cut the management fee for their physical Bitcoin ETP product (BTCW) to 0.15% until the end of this year. A move that makes their product even more attractive, especially for European investors who have been looking for direct exposure to Bitcoin.
Expanding Crypto Exposure With Physical XRP Products
In early December last year, WisdomTree even launched a physical XRP ETP (XRPW), which is now listed on Deutsche Börse Xetra, SIX Swiss Exchange, and Euronext Paris and Amsterdam. The management fee is indeed higher, around 0.5%, but remains competitive when compared to similar instruments.
Interestingly, this product is physically backed by XRP assets held in cold storage by a regulated custodian. This means that it is not just a promise, but there really is an underlying asset.
However, the return of the SEC’s delayed decision has many parties wondering again: is the regulator still not ready to accept an in-kind model for a Bitcoin-based ETF, or are there other considerations that have not been announced?
Until a decision is made in early June, it seems that investors can only wait while continuing to monitor WisdomTree’s steps, which seem to be never running out of ideas to strengthen its position in the market.
Credit: Source link
