Bitwise Asset Management, the leading crypto asset manager, has recently fortified its application for a Bitcoin Exchange-Traded Fund (ETF) with substantial new information. This move is a part of Bitwise’s relentless pursuit to introduce a Bitcoin ETF, a pursuit highlighted by Bloomberg ETF Analyst James Seyffart in a recent tweet. Seyffart’s tweet sheds light on the latest revisions to Bitwise’s ETF application, revealing a new dimension to the company’s ongoing endeavors to secure the elusive commodity.
The crux of the company’s latest amendment addresses and counters the eight “Disagreements” that were the foundation for the SEC’s rejection of the company’s previous ETF applications. There’s a prevailing disagreement regarding Bitwise’s reliance on traditional price discovery criteria like Information Share (IS) and Contributor Share (CS). The SEC has expressed concerns about Bitwise’s acknowledgment of academic issues related to these measurements, citing research by Buccheri et al.
However, Bitwise counters this by asserting that the scarcity of the data introduces a bias that validates its assertion that the CME bitcoin futures market is pivotal for price discovery. Another point of contention is Bitwise’s analysis frequency. The SEC has raised eyebrows at the logic behind using daily findings instead of, for instance, intraday data.
Bitwise justifies this choice by stating that daily employment aligns with academic research and provides a clearer insight into potential time-dependent shifts in trends. Moreover, it argues that price discovery measures necessitate statistical analysis over a reasonable duration.
Following a wave of ETF applications, including a notable one from BlackRock, Bitwise re-submitted their application for a spot Bitcoin ETF in June. However, on August 3rd, Bitwise unexpectedly asked the SEC to withdraw its application for a “Bitcoin and Ethereum Market Cap Strategy ETF.” This withdrawal was surprising, considering the company’s unwavering commitment to securing ETF approval.
Bitwise has meticulously refined its concept, addressing SEC reservations and advocating for a regulated, secure, and transparent Bitcoin ETF. The company’s unwavering commitment to bringing a Bitcoin ETF to the market is evident in the recent revisions to its application.