Breaking: WisdomTree files for Bianco Total Return ETF

Exchange-traded fund (ETF) specialist Eric Balchunas has indicated that WisdomTree has filed for the Bianco Total Return ETF.

WisdomTree just filed for the Bianco Total Return ETF which will use an index created by ⁦@biancoresearch⁩ that invests in other bond ETFs h/t ⁦@Todd_Sohn⁩ pic.twitter.com/npmoRTbaEt
— Eric Balchunas (@EricBalchunas) September 26, 2023

A total return ETF is a type of ETF that invests in a diversified portfolio of bonds and other debt instruments.

Based on the report, WisdomTree will use an index created by ⁦Bianco Research that invests in other bond ETFs.

Bianco Research LLC offers macro investment research on financial markets.

Fixed-income ETFs offer exposure to a basket of securities, targeting all corners of the market, including but not limited to speculative emerging market debt and top-notch US government debt.

A fixed-income ETF investment is ideal for portfolio owners looking to diversify their assets and reduce fees.

WisdomTree Bitcoin ETF application filing

WisdomTree was among the first institutions to file a Bitcoin Spot ETF, joining the traditional finance players' race for approval. If approved, its product would be listed on the Cboe BZX Exchange.

Based on its filing on June 21, the asset manager set out to gain exposure to Bitcoin price with consideration of the expenses and liabilities in relation to the operations of the ETF.

Specifically, WisdomTree intends to value the shares daily based on "the CF Bitcoin US Settlement Price, which aggregates trade flow from major BTC spot exchanges."

The platform's strategy entails performing "in-kind" transactions with Authorized Participants, making it possible to deliver BTC to the US Bank that serves as the Trust's custodian, the National Association.

Meanwhile, a group of Democrat and Republican lawmakers have sent a letter to SEC Chair Gary Gensler, asking him to approve a Bitcoin Spot ETF.

Second Page of the Letter to SEC Chair Gary Gensler

More on ETFs, some say that Vanguard could be on track to win the inflows for the 2023 ETF race, with Balchunas confirming that the ETFs of the investment advisor with $7.7 trillion in assets under management "have taken in more cash than the next four issuers combined." According to Balchunas, Vanguard ETFs are as dominant as ever.

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

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