WisdomTree Investments, a New York-based exchange traded fund (ETF) provider, It has applied for an ETF that invests up to 5% of its portfolio in cash-settled (BTC) bitcoin futures contracts offered by the Chicago Mercantile Exchange (CME).
In the application submitted on June 16 was The proposed fund is intended to invest in the futures markets of four commodity sectors, which include agriculture, industrial metals, precious metals and energy.
No direct investments are made in the underlying physical assets.
Crypto-related ETFs have little luck among regulators
Despite the fact that regulators have so far rejected Bitcoin ETF applications, WisdomTree expects its “WisdomTree Enhanced Commodity Strategy Fund” to kick off due to its low allocation to a product that is regulated by the SEC.
However, The Fund’s preference for futures contracts over physical assets may not fit well with the regulator after the dramatic crash in US oil markets. This led to a drop in prices in April.
Although analysts have doubts about the likelihood of the WisdomTree fund being approved, The inclusion of Bitcoin futures alongside oil, cattle, coffee and aluminum contracts illustrates the growing interest of many fund managers in cryptocurrencies that focus on traditional asset classes.
Traditional asset managers
In May, Kingdom Trust, a regulated custodian that manages more than $ 13 billion in assets, opened an retirement account that supports Bitcoin and traditional assets.
Talking to Kingdom Trust CEO Cointelegraph, Ryan Radloff predicted a growing share of the $ 28 trillion retirement market. will open to crypto assets in the coming years:
“According to our estimates There are 7.1 million Americans who own Bitcoin, have a retirement account, but currently don’t have the option to leave Bitcoin with their other assets on their retirement account.“said.
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