WisdomTree is venturing into launching a spot Bitcoin exchange-traded fund (ETF), despite the unsuccessful attempts of other companies in the same space.
Last week, the company submitted its second Bitcoin ETF application to the U.S. Securities and Exchange Commission (SEC), following an initial rejection two years ago.
Jeremy Schwartz, the global chief investment officer of WisdomTree, expressed optimism that the outcome may be different this time around. He pointed out that the company has been successful in launching products in Europe, where regulators have been more accommodating and have gained confidence in the mechanisms, custodians, and functioning of the markets. Schwartz made these remarks during an interview on CNBC’s “ETF Edge” program.
In 2021 and 2022, the SEC rejected WisdomTree’s prior applications due to concerns about investor protection and public interest. However, Schwartz is hopeful that the changes made in the updated filing will address these concerns and meet the satisfaction of regulators.
Schwartz stated that the updated filings include data sharing agreements, surveillance sharing, and new methods to address concerns. The key question now is whether these measures will effectively alleviate the SEC’s concerns regarding market manipulation, which is a crucial aspect being addressed by everyone involved.
WisdomTree’s latest launch attempt aligns with the growing demand for Bitcoin, which has seen prices surge by nearly 84% since the beginning of the year.
When asked about the likelihood of SEC approval for the spot Bitcoin ETF this time, Schwartz refrained from providing extensive details due to the ongoing filing period. However, he emphasized the importance of data sharing agreements between exchanges and the SEC’s comfort level with these agreements, which he considers to be the key factor in the approval decision.
There is a noticeable increase in interest as multiple companies, including Fidelity Investments, are making efforts to launch spot Bitcoin ETFs despite previous setbacks. Fidelity Investments now joins the ranks of other major players such as WisdomTree, BlackRock, VanEck, and Invesco in pursuing this venture.
WisdomTree, despite facing previous rejections, is making another attempt to launch a Bitcoin exchange-traded fund (ETF). Securities and Exchange Commission (SEC) for the second time, indicating its determination to pursue a Bitcoin ETF offering.
While the firm’s earlier applications were unsuccessful, there are factors suggesting a higher likelihood of success this time around.
WisdomTree’s global chief investment officer, Jeremy Schwartz, expressed optimism, citing the company’s successful product launches in Europe. He highlighted that European regulators have been more receptive and comfortable with the mechanisms, custodians, and market operations related to Bitcoin.
This experience and understanding gained in the European market could positively influence the SEC’s perspective on WisdomTree’s latest application.
The SEC had previously rejected WisdomTree’s applications due to concerns over investor protection and public interest. However, WisdomTree has made updates and changes in its latest filing to address these concerns. This includes data sharing agreements, surveillance sharing, and other measures aimed at preventing market manipulation, a key concern of the SEC.
It remains to be seen whether these modifications and the evolving regulatory landscape will lead to approval for WisdomTree’s Bitcoin ETF. Nevertheless, the company’s persistence and the alterations made in its application indicate its determination to navigate the regulatory landscape and offer investors a Bitcoin ETF option.
Source : cnbc.com
