- Eleanor Terrett says WisdomTree and the NYDFS are planning to offer crypto-related products.
- According to sources, the NYDFS is close to approving a Limited Purpose Charter for WisdomTree.
- A Limited Purpose Trust Charter would allow WisdomTree to act as a depositor or safekeeper for securities in New York.
According to Fox Business journalist Eleanor Terrett, asset manager WisdomTree is working closely with the New York State Department of Financial Services (NYDFS) to offer crypto-related products to customers in New York. According to sources, the NYDFS is close to approving a Limited Purpose Charter for WisdomTree.
In a recent post on X (formerly Twitter), Terrett noted that the NYDFS approval would allow WisdomTree to conduct digital asset business in the New York state. The journalist highlighted that only nine other firms, including Coinbase and Fidelity, have Limited Purpose Trust Charters for crypto.
The Limited Purpose Trust Charter would reportedly allow WisdomTree to act as a depositor or safe keeper for securities in the New York state. Traditionally, the approval would enable the ETF sponsor to make book entry settlements on its trades and reduce trading costs. It would also allow for more efficient clearing and settlement of securities transactions.
Many crypto users consider this a bullish development for the New York crypto industry, noting that it is a significant signal for improving crypto adoption. One of Terrett’s respondents noted that an eventual Limited Purpose Charter approval for WisdomTree would signify “interesting times” for crypto in New York.
WisdomTree is one of the recently approved spot Bitcoin ETF sponsors in the United States. It allows investors to own shares in the fund that holds Bitcoin rather than processing the Bitcoins themselves. The WisdomTree Bitcoin fund is listed and traded on the Cboe BZX exchange under the ticker BTCW.
Users believe that WisdomTree’s recent spot Bitcoin ETF approval, along with the others, has the potential to simplify and secure Bitcoin investment for a broader investor base. That could reshape the crypto industry and investment model for Bitcoin and cryptocurrencies.
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