- Bitwise Asset Management has amended its proposal for a Bitcoin ETF.
- The changes address eight “Disagreements” cited by the US SEC.
- Bitwise withdrew its application for a Bitcoin and Ethereum ETF.
Bitwise Asset Management, a prominent crypto asset manager, has significantly amended its proposal for a Bitcoin Exchange-Traded Fund (ETF). Bloomberg Analyst James Seyffart highlighted the recent modifications to Bitwise’s Bitcoin ETF pursuit via a tweet.
Seyffart’s tweet introduces an interesting perspective on Bitwise’s ongoing efforts to launch a niche product, as evident in the latest changes to their ETF application. The present modification focuses on a comprehensive rebuttal to the eight “Disagreements” cited by the US SEC in rejecting Bitwise’s previous ETF applications.
Substantial Alterations
The first point of disagreement stems from Bitwise’s dependence on traditional price discovery metrics like Information Share (IS) and Contributor Share (CS). Bitwise’s reference to a study by Buccheri et al., indicating academic skepticism about these standards, has drawn the Securities and Exchange Commission (SEC) attention.
Bitwise contends that the CME bitcoin futures market’s role as a price discovery catalyst strengthens its argument. This is due to the bias caused by data sparsity. Another area of dispute is the regularity of Bitwise’s examination. The SEC queried the logic behind using daily data instead of more regular intervals, such as intraday.
Furthermore, Bitwise contends that daily approaches align with scholarly research and provide a more comprehensive comprehension of potential time-sensitive trend shifts. This is because measures of price discovery require statistical evaluation over a suitable time frame.
Bitwise refiled their Bitcoin spot ETF proposal in June, aligning themselves with numerous other industry heavyweights. However, the company surprisingly withdrew its application for the “Bitcoin
