WisdomTree, in an attempt to stand out from its unsuccessful peers, is seeking to launch a spot bitcoin exchange-traded fund (ETF).
Last week, the firm submitted an application to the U.S. Securities and Exchange Commission (SEC), marking its second attempt at a bitcoin ETF after being rejected two years ago.
Jeremy Schwartz, the global chief investment officer of WisdomTree, is optimistic that this time things will be different.
In an interview on CNBC’s “ETF Edge,” Schwartz stated, “We have successfully launched products in Europe where regulators have been more receptive and comfortable with the operational aspects of the market, such as mechanisms and custodianship.”
WisdomTree’s previous applications in 2021 and 2022 were rejected by the SEC due to concerns over investor protection and public interest. Schwartz hopes that the modifications made in the updated filing will address these concerns and satisfy the regulators.
“The new filings include data sharing agreements, surveillance sharing, and other novel approaches,” Schwartz explained. “The question now is whether these changes will alleviate the SEC’s concerns regarding market manipulation. That’s what we’re all striving to address.”
WisdomTree’s latest endeavor comes at a time of heightened interest in bitcoin, which has seen an almost 84% increase in prices so far this year.
When asked why he believes the SEC will approve the spot bitcoin ETF this time, Schwartz responded cautiously, “While in the filing process, I can’t comment extensively on the details. However, I believe that data sharing agreements between exchanges and the SEC will be crucial in establishing a sense of trust and comfort. This will be a key element for approval.”
It seems that interest in launching a spot bitcoin ETF is on the rise.
Fidelity Investments, despite previous failures, has also filed with the SEC this week to launch a spot bitcoin ETF. Other major players such as BlackRock, VanEck, and Invesco are also pursuing similar initiatives.
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