- WisdomTree CEO commented on the chances of bitcoin-ETF approval
- He believes candidates should ensure market monitoring
- Then the SEC will not fear speculation
WisdomTree fund head Jeremy Schwartz was interviewed by CNBC. He discussed mass applications for bitcoin-ETFs, as well as the regulatory framework surrounding the topic.
According to the businessman, there is an important “key” to understanding with the SEC. Crypto firms must exchange data with fund providers to prevent market manipulation.
“One of the common features of recent applications [for spot Bitcoin ETFs]… is that they are trying to negotiate agreements to monitor data exchange between exchanges to help the SEC address price manipulation.”
The SEC has so far denied all previously filed applications for spot crypto ETFs. Nevertheless, in 2021 the agency approved the first crypto-futures ETF. This is despite the fact that the futures market is also built on spot prices.
Schwartz believes the commission allowed such ETFs in part because the futures market sends information to the SEC. The businessman believes that all applicants now need to enter into an agreement to monitor data sharing.
“This will be one of the key things that the SEC will consider when approving bitcoin-ETF applications.”
On June 20, WisdomTree filed its application for a spot bitcoin-ETF. They became the fifth company to make such plans.