SEC Announces Extension for WisdomTree Bitcoin Fund Review
The U.S. Securities and Exchange Commission (SEC) has announced an extension in the review period for a proposed modification concerning the WisdomTree Bitcoin Fund, allowing for in-kind creations and redemptions of its shares. This decision comes after the Cboe BZX Exchange, Inc. submitted the proposal on February 20, 2025.
Regulatory Timeline and Public Commentary
Detailed in the SEC’s release dated April 14, 2025, this move is in accordance with Section 19(b)(1) of the Securities Exchange Act of 1934 and related regulations.
This proposal first appeared in the Federal Register on March 5, 2025, during which no public commentary was received. According to the regulations, once a proposed rule change is filed, the Commission typically has 45 days to either approve, reject, or take additional steps regarding that proposal. This timeline would have culminated on April 19, 2025.
Need for Additional Review
However, the SEC has determined that it needs more time to thoroughly evaluate the implications of the proposed changes. In light of this need for careful consideration, the SEC has set a new deadline of June 3, 2025, by which it will act on the proposal.
This extension is intended to ensure the Commission has adequate time to deliberate on the various aspects raised by the proposed modifications to the fund’s trading rules. Such comprehensive reviews are critical, particularly for funds linked to the volatile cryptocurrency markets, as the SEC aims to maintain informed regulatory oversight of new financial instruments.
Importance of Regulatory Scrutiny
The announcement was made by Sherry R. Haywood, Assistant Secretary to the SEC, highlighting the importance of regulatory scrutiny in the evolving landscape of cryptocurrency investment.
