Bitwise Draws Close to Spot Bitcoin Fund Approval With Latest Academic Record
NYSE Arca Exchange has submitted an updated application to list the Bitwise Bitcoin exchange-traded fund (ETF) Trust.
This revised application includes a detailed academic analysis to address the significant concerns raised by the Securities Exchange Commission (SEC) regarding spot bitcoin ETFs.
In the 40+ page Bitwise filing, the NYSE emphasized the SEC's consistent reference to the "mixed" or "inconclusive" academic record as a benchmark for previous disapproval of the Bitcoin ETFs proposal.
The submission also highlighted the SEC's approval of two bitcoin futures ETFs under the Securities Act of 1933 in 2022.
In granting these applications, the SEC determined that the Chicago Mercantile Exchange (CME) Group surveillance measures could effectively detect and address any attempts to manipulate the CME bitcoin futures market.
This also includes efforts to manipulate the price of proposed futures ETFs.However, Bitwise disagreed with the notion that the academic alliteration between spot and futures is mixed.
The exchange firmly asserted that there is a strong consensus among well-conducted studies indicating that the CME futures market takes the lead in influencing the spot market.
Bitwise also contended that trading a new spot bitcoin ETF wouldn't significantly impact prices in the CME futures market unless it also substantially impacted prices in the spot market.
This is due to the strong connection and arbitrage relationship between the bitcoin futures and spot prices.
Matt Hougan, Bitwise's Chief Investment Officer (CIO), took to X to express his skepticism about the SEC's past rejections of spot Bitcoin ETFs.
Hougan further stressed that the Grayscale court win over the SEC is essential for the approval of
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