WisdomTree Global Chief Investment Officer Jeremy Schwartz commented on cryptocurrency spot exchange-traded funds (ETFs). June 26th.
Surveillance agreement could make SEC ‘comfortable’
In an interview with CNBC, Schwartz said:
“One of the recent [spot Bitcoin ETF] A common denominator in the filings is that the SEC is seeking to establish a data-sharing oversight agreement between the exchanges to reassure them. [the question of] price manipulation. “
The U.S. Securities and Exchange Commission (SEC) has so far rejected all spot cryptocurrency ETFs. However, the agency has approved cryptocurrency futures ETFs from the second half of 2021, starting with the ProShares offering, which went live on October 19, 2020.
Schwartz pointed out that the SEC has started approving futures ETFs despite the fact that futures markets are based on spot prices. He suggested that regulators approved the ETFs in part because the futures market shares information with the SEC.
He further said that the Data Sharing Oversight Agreement “could be one of the key points” the SEC will consider when approving a Spot Bitcoin ETF application.
WisdomTree has submitted an ETF application
WisdomTree submitted a new application for a Spot Bitcoin ETF on June 20. The company filed the application in parallel with similar applications from other companies such as Bitwise, Valkyrie Investments, Invesco and BlackRock, which sparked the trend.
Schwartz reiterated that WisdomTree’s application is determining whether it can work with the SEC to make the proposed price monitoring “comfortable.”
When asked about widespread concerns about fraud and lack of regulation, Schwartz said SEC Chairman Gary Gensler wanted “more public regulation.” He noted that while Gensler and his agency are taking action against cryptocurrencies that they consider to be securities, they are treating bitcoin as a commodity rather than a security.
He further suggested that a data-sharing oversight agreement could help the SEC overcome their concerns one by one.
WisdomTree executives say the data-sharing agreement is a “crucial part” of the Bitcoin ETF application, which first appeared on CryptoSlate.