WisdomTree became the second company in the United States to file with the US Securities and Exchange Commission (SEC) to launch a tradable exchange-traded fund (ETF) on ether.
The first application for a similar product was submitted by VanEck on May 8 and is still under review by the regulator. Now, an application has been filed with the SEC on Form S-1 to launch the WisdomTree Ethereum Trust fund, whose shares are expected to be listed on the CBOE BZX exchange.
The application has not yet been fully processed, for example, it is not clear under which ticker the fund’s shares will be traded, and the custodial service that will be responsible for storing cryptocurrency is also unknown. But it is known that the stock price of the fund will be calculated using a special index CF-Ether-Dollar US. “Since the shares will be listed on the exchange, investors will be able to indirectly invest in ETH using a traditional brokerage account. The trust allows access to the market while avoiding the potential barriers and risks associated with the direct purchase and storage of ETH, ” the document says. Earlier, the SEC repeatedly rejected applications to launch an ETF for bitcoin. At the same time, Canadian regulators approved both the launch of several ETFs for bitcoin and similar products for ether.