2025-10279Notice

SEC Ponders Bitcoin Swaps for WisdomTree Fund: Cash Out or Crypto In?

Published Date: 6/6/2025

Notice

Summary

The Cboe BZX Exchange wants to change the rules for the WisdomTree Bitcoin Fund so investors can create and redeem shares using actual Bitcoin instead of cash. This could make trading smoother and possibly cheaper for folks involved. The SEC is now deciding whether to approve this change by June 3, 2025.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

SEC Reviewing Fraud and Manipulation Risks

The SEC has opened proceedings to study whether allowing in-kind bitcoin creations and redemptions would be consistent with Section 6(b)(5) of the Exchange Act, which requires exchanges to prevent fraudulent and manipulative acts and protect investors. Interested persons may submit written comments by June 27, 2025, with rebuttals due by July 11, 2025.

Create/Redeem WisdomTree Shares With Bitcoin

The Exchange proposes that shares of the WisdomTree Bitcoin Fund can be created and redeemed using actual bitcoin instead of cash. The change would let investors move bitcoin into or out of the fund in-kind, and the SEC will decide whether to approve the change by June 3, 2025. The proposal could make trading smoother and possibly cheaper for people involved.

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Key Dates

Effective Date
Published Date
6/3/2025
6/6/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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