Bitwise Asset Management met with Securities and Exchange Commission staff earlier this month to discuss a proposed rule change that would allow the regulator to list and trade shares of the Bitwise Bitcoin ETF Trust.
Bitwise Chief Operating Officer Teddy Fusaro and Global Head of Research Matt Hougan gave a presentation to SEC commissioners Robert Jackson, Hester Peirce and Elad Roisman on the state of the bitcoin markets. The presentation focused on the improved efficiency of the bitcoin spot market, the institutionalization of the cryptocurrency’s custody and the growth of the regulated futures market.
For instance, the average deviation in prices on the 10 real spot bitcoin exchanges has dropped significantly since December 2017. In the past year, the market has become particularly “efficient.” And bitcoin custody has become fully institutional, the presentation said. In addition, the presence of fake volume in reported bitcoin trading data is now widely understood.
In January, Bitwise filed a registration statement with the SEC to launch its bitcoin ETF, and it’s currently under review. The SEC has yet to approve any bitcoin ETFs.
