Jeremy Schwartz, Global Chief Investment Officer at WisdomTree, commented on cryptocurrency spot exchange-traded funds (ETFs) on June 26.
Supervisory agreements can make SEC “comfortable”.
During a CNBC interview, Schwartz said:
“One of the recent things [spot Bitcoin ETF] filings have in common…is that they are trying to get oversight data sharing agreements between exchanges to make the SEC comfortable with it [the question of] price manipulation.”
The US Securities and Exchange Commission (SEC) has so far rejected all spot cryptocurrency ETFs. However, the agency approved crypto futures ETFs starting in late 2021, starting with ProShares’ offering, which went live on October 19 of that year.
Schwartz noted that the SEC began approving futures ETFs despite the fact that the futures market is based on spot prices. He suggested that the agency approved those ETFs in part because the futures market shares information with the SEC.
He went on to say that data-sharing agreements “could be one of the most important points” the SEC considers when approving spot Bitcoin ETF filings.
WisdomTree has filed an ETF application
WisdomTree filed a new application for a spot Bitcoin ETF on June 20. It filed that filing along with similar filings from other companies — including Bitwise, Valkyrie Investments, Invesco — and BlackRock — setting the trend.
Schwartz reiterated that WisdomTree’s application revolves around whether it can work with the SEC to get “comfortable” with the proposed price oversight.
When asked about broader concerns about fraud and lack of regulation, Schwartz noted that SEC Chairman Gary Gensler wants “more official regulation.” He noted that Gensler and his agency have taken action against cryptocurrencies they consider securities, but have treated Bitcoin as a commodity rather than security.
He further suggested that data-sharing agreements could help the SEC address each of his concerns one by one.
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