- WisdomTree registered its CoinDesk 20 Fund in Delaware on September 22.
- The fund will offer exposure to 20 major cryptocurrencies, including Bitcoin, Ethereum, XRP, Solana, and Cardano.
WisdomTree has registered its CoinDesk 20 Fund in Delaware, marking a breakthrough in cryptocurrency investment products. The registration was done on September 22 based on the filings of the Delaware Division of Corporations.
The fund is designed for traditional investors seeking exposure to 20 large digital assets. Bitcoin, Ethereum, XRP, Solana, Cardano, Chainlink, Sui, and Hedera Hashgraph are some examples of cryptocurrencies the portfolio covers.
This registration is based on the recent approval of the generic listing standards of crypto-funds by the SEC. The new approach abolishes the past regulatory hurdles and shortens the approval times to 75 days.
New SEC Framework Streamlines Crypto ETF Approvals
Last week, the Securities and Exchange Commission approved generic listing standards for cryptocurrency funds. As noted in our earlier post, Stock exchanges are now given a chance to file directly with the SEC to list and trade these investment products. The standards eliminate the 19b-4 form requirement, which once delayed approvals.
Bloomberg senior ETF analyst Eric Balchunas believes that the simplified process will result in new crypto ETF and ETP applications. The regulatory change is a significant change in the way in which digital asset funds access public markets.
Nevertheless, the SEC has yet to approve any ETF tracking spot prices of alternative cryptocurrencies under the Securities Act of 1933. Instead, REX-Osprey and Tuttle have been approved as ETFs under the Investment Company Act of 1940.
Last week, REX-Osprey released XRP and Dogecoin ETFs and had the highest investor demand in the history of the product. These funds show an increasing institutional and retail interest in cryptocurrency exposure using traditional investment vehicles.
The fact that WisdomTree is registered in Delaware indicates that the S-1 filing is likely to be made to the SEC in the next few days. This kind of filing would initiate the federal approval procedure for public trading.
Market Response Shows Immediate Price Impact
Cryptocurrency markets responded quickly to WisdomTree’s news. The prices of XRP, Solana, and Cardano went up 2% in an hour after the news release.
XRP recovered to $2.85 after recent drops. XRP traded between $2.78 and $2.90 during the 24-hour period following the news. The token is trading at around $2.87 at the time of writing, up 2.24% in the last 24 hours.
Solana faced broader market pressures despite the announcement. The token traded 7% lower at $216 with an intraday range of $212.80 to $231.94. At the time of writing, the token is trading at around $218.65, down 2.57% in the last 24 hours.
Cardano showed mixed signals with buy-the-dip activity but remained down 4% over 24 hours. The token exchanged hands at $0.822 at press time, suggesting a 0.44% increase in the last 24 hours.
