In a significant development for the WisdomTree Bitcoin Fund (the "Trust"), a series of agreements with the Bank of New York Mellon (NYSE:BK) ("BNY Mellon") were finalized on November 20, 2024. The Trust, which is listed under the trading symbol BTCW on the Cboe BZX Exchange, Inc., has secured a three-year contract with BNY Mellon with provisions for automatic annual renewals unless terminated by either party.
The agreements encompass a Custody Agreement, a Fund Administration and Accounting Agreement (FAA Agreement), and a Transfer Agency and Service Agreement (TA Agreement). These contracts are set to strengthen the operational infrastructure for the Trust by detailing the roles BNY Mellon will play in asset custody, fund administration, accounting, and transfer agency services.
Under the Custody Agreement, BNY Mellon will hold certain assets of the Trust, providing a secure storage solution. The FAA Agreement outlines BNY Mellon's responsibilities to offer accounting, administrative, legal, financial reporting, and other services crucial for the Trust's maintenance and operations. The TA Agreement establishes BNY Mellon's role in handling the Trust’s shares transfer processes, including the processing of creation and redemption orders.
InvestingPro Insights
The WisdomTree Bitcoin Fund (BTCW) has shown remarkable performance in recent months, aligning with the Trust's strategic moves to strengthen its operational infrastructure. According to InvestingPro data, BTCW has delivered impressive returns across various timeframes. The fund's year-to-date and 1-year price total return stands at a substantial 95.5%, indicating strong investor interest and positive market sentiment towards Bitcoin-related investments.
The fund's 3-month price total return of 43.33% and 1-month return of 35.91% suggest a recent surge in momentum, potentially influenced by broader cryptocurrency market trends and the Trust's operational enhancements, including the newly established agreements with BNY Mellon.
InvestingPro Tips highlight additional insights that could be valuable for investors considering BTCW. These tips, part of a larger set available on the InvestingPro platform, offer deeper analysis of the fund's performance and market position. For those seeking a more comprehensive understanding of BTCW and its potential, InvestingPro offers several more tips that could inform investment decisions in this dynamic sector.
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