Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, commented on cryptocurrency cash exchange-traded funds (ETFs) at June 26.
Oversight deals could make SEC ‘comfortable’
During an interview with CNBC, Schwartz said:
“One of the things that recent filings (spot Bitcoin ETF) have in common…is that they’re trying to have supervisory data-sharing agreements between exchanges to help make the SEC comfortable with ( the issue of) price manipulation.”
The United States Securities and Exchange Commission (SEC) has rejected all spot cryptocurrency ETFs to date. However, the agency approved crypto futures ETFs from the end of 2021 starting with ProShares’ offering, which went live on October 19 of the same year.
Schwartz noted that the SEC has begun approving futures ETFs despite the fact that the futures market is based on spot prices. He suggested the agency approved these ETFs in part because the futures market shares information with the SEC.
He went on to say that data-sharing oversight agreements “could be one of the key points” the SEC considers in approving Bitcoin ETF spot applications.
WisdomTree submitted an ETF application
WisdomTree submitted a new application for a spot Bitcoin ETF on June 20. He submitted this filing alongside similar requests from other companies – including Bitwise, Valkyrie Investments, Invesco – and BlackRock, which sparked the trend.
Schwartz reiterated that WisdomTree’s request hinges on its ability to work with the SEC to make it “comfortable” with the proposed price monitoring.
Asked about broader concerns about fraud and lack of regulation, Schwartz noted that SEC Chairman Gary Gensler wants “more formal regulation.” He noted that Gensler and his agency have taken action against cryptocurrencies that they consider securities, but treated Bitcoin as a commodity rather than a security.
He further suggested that data-sharing oversight agreements could help the SEC overcome each of its concerns one at a time.
The WisdomTree exec says data-sharing agreements are a “key feature” of the Bitcoin ETF apps that first appeared on CryptoSlate.