In an important development, WisdomTree has filed an application for the Ethereum exchange-traded fund (ETF) before the Securities and Exchange Commission (SEC). This was revealed by the documents with the SEC, although there is no confirmation from the filing agency.
WisdomTree has already filed for the Bitcoin ETF before the commission. With the application for the Ethereum ETF, the company has become second in the US to apply for Ethereum-based products. If the approval gets through, it will become convenient for the investors in the US to have their hands on the investment related to Ethereum. This is because investors need not take ownership of Ethereum’s native token, the Ether, to invest in the popular blockchain network.
It would be interesting to witness the response from the SEC as the regulatory agency has not approved a single case of Bitcoin ETF. In such a scenario, getting permission for the Ethereum ETF seems like a far-fetched proposition. Cryptocurrency analysts and experts are interestingly looking into the development, and this latest application from WisdomTree will serve as an indicator of the things to come in the future.
In contrast to SEC, the Canadian regulator has moved on ETFs related to both Bitcoin and Ethereum. As a result, investors can easily choose between Bitcoin and Ethereum ETF and move swiftly from one form to another. There is no clarity on the position of SEC yet as the American regulator is taking an unusually long time to decide upon the nature of the investments related to Bitcoin and other digital currencies.
The lack of clarity does not bode well for the crypto domain and can even harm the long-term adoption potential of digital coins in the country. Hopefully, we will see some positive development on this front that will help investors access one additional kind of asset for investment purposes.