WisdomTree, a major Bitcoin Spot ETF operator, is on the verge of a notable milestone. The company is working closely with the New York State Department of Financial Services (NYDFS) to expand its crypto-related services to customers in the state.
According to reliable sources, NYDFS is “very close” to granting WisdomTree a Limited Purpose Trust Statute. This statute will allow the company to conduct digital asset business within New York State. If approved, WisdomTree would join a select group of firms with similar charters, including Coinbase and Fidelity.
The Limited Purpose Trust Regulation is a regulatory authority that allows financial institutions to operate as limited liability trust companies. These companies may engage in certain activities related to digital assets, such as custody, trading and management.
The development was first reported by cryptocurrency journalist Eleanor Terrett.
Bitcoin Spot ETFs were approved on January 10, and 11 companies launched their own ETF products. Grayscale's GBTC product, on the other hand, was converted from a trust to a spot ETF and therefore saw billions of dollars of BTC outflow, causing a decline in the Bitcoin price.
*This is not investment advice.