Bitwise Files Amendment to Bitcoin Spot ETF Application, Citing CME Futures Market
Bitwise has submitted an amendment to its Bitcoin spot ETF application, presenting new arguments to challenge the explanations given by regulators for denying American investors access to the product. The firm asserts that the CME Bitcoin futures market plays a significant role in determining Bitcoin’s price discovery and can serve as a regulated market for surveillance purposes.
According to Bitwise, the SEC’s primary argument against approving a Bitcoin spot ETF is that the CME futures market is not sufficiently large or related to the spot market to counteract potential manipulation. However, Bitwise claims that Bitcoin’s price is influenced more by the futures market than the SEC realizes. A previous study by Bitwise found that CME futures accounted for a significant percentage of Bitcoin’s price discovery.
The SEC recently lost a lawsuit with Grayscale, which accused the agency of arbitrarily rejecting its Bitcoin spot ETF application while approving futures ETFs. Bitwise believes that solid arguments regarding the relationship between CME futures and spot prices are crucial if the SEC appeals the court ruling.
Hot Take: Bitwise Challenges SEC’s Denial of Bitcoin Spot ETF with New Arguments
Bitwise has filed an amendment to its Bitcoin spot ETF application, aiming to counter the SEC’s explanations for denying access to American investors. By highlighting the significance of the CME Bitcoin futures market in determining Bitcoin’s price discovery, Bitwise argues that it can serve as a regulated market for surveillance purposes. The firm’s research suggests that trading volume within Bitcoin’s spot market may be largely fake, emphasizing the importance of the futures market.
The recent loss of a lawsuit by the SEC against Grayscale has boosted investor confidence in challenging regulatory decisions. If the SEC appeals this ruling, strong arguments related to the relationship between CME futures and spot prices will be crucial. Bitwise’s amendment provides fresh arguments and research to address this question head-on, potentially paving the way for the approval of a Bitcoin spot ETF in the United States.
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