WisdomTree is attempting to launch a spot Bitcoin exchange-traded fund, though its competitors have failed.
The company filed an application with the U.S. Securities and Exchange Commission last week, becoming its second Bitcoin ETF application after an initial rejection two years ago.
However, WisdomTree’s Jeremy Schwartz thinks this time could be different.
“We’ve been successful in launching products in Europe,” the company’s global chief investment officer said on CNBC’s ETF Edge this week. “The European regulators have been friendlier and have been able to get acquainted with the mechanisms, the custodians [and] how the markets work.”
The SEC denied WisdomTree’s previous filings in 2021 and 2022, saying they fell short to protect investors and the public interest.
Schwartz hopes the changes made in the company’s updated filing will satisfy regulators.
“Some of the new filings have these data-sharing agreements, monitoring-sharing agreements, and new-practice agreements,” he said. “Now the question is, will this address the SEC’s concerns about market manipulation? But that’s one of the things I think we all want to address.”
WisdomTree’s recent launch initiative comes at a time when appetites have been growing Bitcoin. As of late Friday, prices are up almost 84% so far this year.
“It’s hard for me to comment on too many details while you’re here [filing] Periods,” Schwartz said when ETF Edge host Bob Pisani asked him why he thinks the SEC will approve the spot bitcoin ETF this time. “But I think the key is will the exchanges share data… and [will the SEC] have more comfort than before? I think that the data sharing agreements are the key element for that.”
It seems that interest is increasing.
According to an SEC filing this week, Fidelity Investments is also trying to launch a spot Bitcoin ETF, despite previous failures. It joins WisdomTree, BlackRock, VanEck and Invesco.