The US regulator finally approved the request of crypto fund manager WisdomTree. According to reports, the SEC supports the company to launch its requested Blockchain fund for two altcoins.
SEC approves WisdomTree altcoin fund
WisdomTree was the latest crypto fund manager to get approval from the SEC. According to reports, the regulator has approved WisdomTree’s nine blockchain-based mutual funds for the US market. According to the fund manager’s official announcement, the latest cryptocurrency product will reflect different risks, each linked to traditional asset investments but will not follow cryptocurrencies.
WisdomTree intends to use the Stellar or Ethereum protocol to reflect secondary share ownership. Meanwhile, official property accounts will be managed by the digital fund’s transfer agencies. In addition, the wealth management platform wants to bring fixed income along with stocks and commodities to the ecosystem by adding different assets and investment products.
Altcoin projects rise slightly after announcement
Despite the positive development, the price of both XLM and ETH has yet to show any obvious reaction. At the time of writing, XLM price is down 2.29% to trade at $0.07526. Ethereum, on the other hand, was slightly bullish. It is currently trading in the green around 2% over the last 24 hours.
SEC approves 9 more WisdomTree ‘Blockchain-enabled’ funds
WisdomTree’s head of digital assets, Will Peck, stated that the new proposal will demonstrate the type of experience the fund manager will provide to its users by incorporating traditional assets into the cryptocurrency ecosystem. In his statements on the subject, Peck said:
WisdomTree believes that Blockchain-based finance will further improve the experience of investors by increasing the liquidity, standards and transparency that the company aims to achieve in the future. Nine digital funds will identify the driving force that will help WisdomTree bridge the gap between traditional finance (TradFi) and digital finance.
The SEC’s approval, meanwhile, came just months after the fund manager launched the fund, WTSYX, its first digital finance product. WisdomTree launched WTSYX in September. The company also announced its short-term Treasury digital fund following SEC approval.
Commenting on the latest development, Jarrett Lillian, chief operating officer (COO) of WisdomTree, stated that despite the popularity of the cryptocurrency, the real opportunity lies in the Blockchain-based financial model.
WisdomTree Eyes ETF endorsement
cryptocoin.com In a similar move to Grayscale Investments, WisdomTree is pressuring the SEC to approve its proposal to offer Bitcoin ETFs to institutional investors. Both firms have applied for regulatory approval since the beginning of last year. Not surprisingly, the SEC, like many others, has repeatedly rejected the firm’s applications. The regulator has raised concerns about fraud and market manipulation in the Bitcoin spot ETF market. Many other platforms have applied for ETF services, but the SEC has yet to grant any permission.
The hefty demand for companies’ Bitcoin spot ETF is based on an announcement that emerged in early 2021. It was during this period that ETFs could be purchased on mainstream exchanges rather than crypto exchanges. Additionally, ETFs are an investment option recognized by mainstream investors. They are also reliable ways to invest in Bitcoin through regulated platforms.
