WisdomTree Executive: Data-sharing agreement is a “critical component” for Bitcoin ETF application

WisdomTree's executive sees a data-sharing agreement as vital to the Bitcoin ETF application.

Author: Mike Dalton, Cryptoslate; Translation: Matsuyuki, Blocking

Jeremy Schwartz, Chief Investment Officer of WisdomTree Global, commented on cryptocurrency exchange-traded funds (ETFs) on June 26.

Regulatory agreements can make the SEC “feel at ease”

Schwartz told CNBC that “recently submitted files for (spot Bitcoin ETFs) have one thing in common… they are trying to reach a data sharing and monitoring agreement between exchanges to help the SEC deal with price manipulation.”

The US Securities and Exchange Commission (SEC) has so far rejected all spot cryptocurrency ETFs. However, the agency began approving cryptocurrency futures ETFs in late 2021, starting with ProShares’ product launched on October 19 of that year.

Schwartz pointed out that although the futures market is based on spot prices, the SEC began approving futures ETFs. He suggested that one reason the agency approved these ETFs is that the futures market shares information with the SEC.

He went on to say that the data sharing and monitoring agreement “may be one of the key points the SEC considers when approving spot Bitcoin ETF applications.”

WisdomTree has submitted an ETF application

WisdomTree submitted a new spot Bitcoin ETF application on June 20. Meanwhile, other companies such as Bitwise, Valkyrie Investments, Invesco, and BlackRock have also submitted similar applications, sparking this trend.

Schwartz reiterated that WisdomTree’s application depends on whether it can work with the SEC to make it “adapt” to the proposed price monitoring.

When asked about broader concerns about fraud and lack of regulation, Schwartz pointed out that SEC Chairman Gary Gensler hopes for “more official regulation.” He noted that Gensler and his agency have taken action on cryptocurrencies they consider securities, but they consider Bitcoin a commodity rather than a security.

He further suggested that a data sharing and monitoring agreement can help the SEC solve problems once and for all.