A second Bitcoin ETF is under review for possible approval by US financial regulator, the Securities and Exchange Commission (SEC) revealed last week.
In a public notice on Friday, the SEC said it had started its review of WisdomTree’s bitcoin ETF application, the WisdomTree Bitcoin Trust, that has been filed with the Cboe BZX Exchange.
No cryptocurrency ETF has been authorised by the US yet, with reasons for previous rejections including the possibility of market manipulation.
ETF specialist can Van Eck also has a bitcoin ETF application under review by the SEC.
It filed its application on 1 March, firing the starting gun on a 45-day review process.
WisdomTree’s application will also now be subject to a 45-day review period.
Pressure has been mounting on the SEC to grant approval with the surge in popularity of bitcoin over the past six months.
The price has risen in value 500% and the cryptocurrency is seen by some as an alternative to traditional hedge assets such as gold.
Mainstream investment giant Fidelity has filed with the SEC to launch a bitcoin ETF under the Wise Origin brand with commentators expecting a flood of other Wall Street heavyweights to follow suit once one is approved and the points of reference established.
Going down the ETF would allow investors a route into the cryptocurrency without having to take on the risk of investing directly.
Several bitcoin ETFs have already launched in Canada and one in Brazil, while the hugely successful BTCetc, a bitcoin ETF listed in Germany has attracted more than US$1bn.
ETC, the group behind the bitcoin ETF, has just launched a physical Litecoin ETC that will also be traded in Germany.