Trade Bitcoin Like Cash? Cboe Proposes Fund Shake-Up
Published Date: 3/5/2025
Notice
Summary
The Cboe BZX Exchange wants to let the WisdomTree Bitcoin Fund create and redeem shares using actual Bitcoin instead of cash. This change helps investors trade more efficiently and could save money on fees. The SEC is reviewing this proposal, so keep an eye out for updates soon!
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Bitcoin Fund May Use Bitcoin Instead of Cash
The WisdomTree Bitcoin Fund would be allowed to create and redeem shares either in cash or in-kind using bitcoin. Creations/redemptions occur in blocks of 5,000 Shares (a "Creation Basket"), with NAV determined as of 4:00 p.m. Eastern Time and in-kind orders settled by delivery of bitcoin to or from the Trust.
Authorized Participants Will Source Bitcoin
Authorized participants (or their designees) may deliver bitcoin to the Trust to create shares and may receive bitcoin when redeeming shares, instead of the Trust buying or selling bitcoin itself. The Exchange says this could lessen the Trust's market impact, increase efficiency, and ultimately benefit end investors.
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