Bitwise Asset Management has filed an amended application for a spot Bitcoin exchange-traded fund (ETF), beefing it up with 40 pages of new text responding to the United States Securities and Exchange Commission\u2019s objections to the product. However, it still might not be enough to satisfy regulatory requirements, a company executive warned.<\/p>\n
Bitwise is among the six financial firms whose spot Bitcoin (BTC) ETF applications are on hold after the SEC delayed its consideration. That move came after a court overturned the agency\u2019s rejection of a Grayscale Investments application to convert its over-the-counter Grayscale Bitcoin Trust into a listed BTC ETF.<\/p>\n
Bitwise chief investment officer Matt Hougan explained in a thread on X (formerly Twitter) that should the SEC appeal the Grayscale ruling, \u201cwe return to the status quo.\u201d In that case, he wrote:<\/p>\n
\u201cWe\u2019re back to needing to prove that the CME bitcoin futures market leads price discovery over the spot market such that it can serve as a \u2018regulated market of significant size\u2019 for the purpose of surveillance.\u201d<\/p><\/blockquote>\n
The Chicago-based CME Group operates derivatives exchanges, including a BTC futures and options market. <\/p>\n
In its amended application, Bitwise engaged with what the SEC called \u201cthe \u2018mixed\u2019 or \u2018inconclusive\u2019 academic record\u201d on the lead-lag relationship between BTC futures and spot markets. After looking at academic works cited in 11 previous SEC disapproval orders for spot BTC exchange-traded products, Bitwise said, \u201cThe data show convincingly that the CME is the leading source of price discovery.\u201d<\/p>\n
Furthermore, Hougan summarized that the amended application demonstrated that \u201cevery well-designed academic study supports the finding that the CME is \u2018significant,\u2019\u201d countering several arguments put forward by the SEC in previous disapproval decisions.<\/p>\n
The conclusions reached in the amended Bitwise application are significant for meeting SEC requirements. The agency has determined that a listing exchange must have a surveillance-sharing agreement with a regulated market, such as the CME BTC futures market, \u201cof significant size.\u201d That requirement comes into force if an exchange \u201ccannot establish that other means to prevent fraudulent and manipulative acts and practices are sufficient.\u201d The SEC has found that to be the case for previous applicants.<\/p>\n
Hougan warned, \u201cSurveillance sharing agreements with spot exchanges are positive, but may not satisfy the technical regulatory requirements.\u201d<\/p>\n
Magazine: Bitcoin ETF optimist and Worldcoin skeptic Gracy Chen: Hall of Flame<\/em><\/strong><\/p>\nSource: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Bitwise Asset Management has filed an amended<\/p>\n","protected":false},"author":3,"featured_media":181867,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n
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