New York-based renowned ETF [Exchange-Traded Fund] provider, ‘WisdomTree Investments’ has filed for an ETF that will invest upto 5% of its portfolio in cash-settled Bitcoin [BTC] futures contracts offered by CME [Chicago Mercantile Exchange].
The ETF application, that was recently filed on 16th June, asserts that the proposed fund will invest within the futures markets of 4 commodity sectors spanning agriculture, industrial metals, precious metals as well as energy. No direct investments are going to be made within the underlying physical assets.
ETFs & Regulators – A Long Journey Of Rejections
Despite for this so long, the regulators have rejected applications regarding Bitcoin ETFs, WisdomTree hopes that its “WisdomTree Enhanced Commodity Strategy Fund’ are going to be given the go-ahead due its small allocation toward a product that’s regulated by the SEC.
On the other hand, the fund’s preference for futures contracts over physical assets might not sit favourably with the regulator, following the spectacular crash within the United States oil markets that saw prices fall under the negative in April.
However, several analysts are already expressing their concerns regarding the likelihood that WisdomTree’s fund are going to be approved, the inclusion of Bitcoin futures alongside contracts for oil, cattle, coffee, along with the aluminium reflects the growing interest in cryptos on the a part of many fund managers who are focused on mainstream asset classes.
Crypto Pension Plans Along With Traditional Assets
Earlier in May, Kingdom Trust, a regulated custodian managing over $13 Bln in assets, launched a pension plan supporting Bitcoin along with the traditional assets.
While adding further, Kingdom Trust’s CEO, Ryan Radloff, aforesaid that a gradual increasing share of the $28 trillion United States retirement market becomes opened to cryptocurrency assets within the upcoming years. He said:
“By our estimates, there are 7.1 Mln Americans who own Bitcoin, have a pension plan , but presently don’t have any choices to hold Bitcoin’s within their pension plan as in case of other assets.”
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