SEC Considers Allowing Physical Redemptions for WisdomTree Bitcoin ETF

The US Securities and Exchange Commission (SEC) is soliciting feedback on whether to amend rules to permit WisdomTree Bitcoin Fund to conduct physical creation and redemption. As per the agency's announcement, for the WisdomTree Bitcoin Fund, the SEC invites individuals to submit written data, viewpoints, or arguments within 21 days concerning whether the rule change should be approved or opposed. The WisdomTree Bitcoin Fund (BTCW) is an ETF that holds Bitcoin directly, which was initially approved in January 2024. Enabling physical redemptions would allow investors to redeem their shares using the underlying asset (i.e., Bitcoin) instead of cash.