Bitwise Asset Management, a frontrunner in crypto asset management, has significantly updated its application for a Bitcoin Exchange-Traded Fund (ETF). This development comes as the firm continues its determined efforts to launch a Bitcoin ETF, a journey recently spotlighted by Bloomberg ETF Analyst James Seyffart via a tweet. Seyffart’s insights reveal Bitwise’s renewed strategy to navigate the regulatory maze and obtain the coveted ETF approval.
Central to Bitwise’s revised application is a comprehensive response to the eight primary “Disagreements” that led the SEC to decline their earlier ETF proposals. One major point of contention has been Bitwise’s adherence to conventional price discovery metrics such as Information Share (IS) and Contributor Share (CS). The SEC, referencing research by Buccheri and others has voiced reservations about Bitwise’s approach to these academic metrics.
In its defense, Bitwise argues that limited data availability supports its claim that the CME bitcoin futures market plays a crucial role in price discovery. The firm also addresses the SEC’s skepticism regarding its preference for daily analysis over potentially more granular intraday data. Bitwise maintains that daily evaluations are consistent with scholarly research and offer a more discernible perspective on time-sensitive trends. They further contend that effective price discovery requires statistical scrutiny over an extended period.
Against a surge in ETF applications, notably one from industry giant BlackRock, Bitwise re-entered the fray with a fresh application for a spot Bitcoin ETF in June. Yet, in a twist on August 3rd, the firm unexpectedly requested the SEC to retract its application for a combined “Bitcoin and Ethereum Market Cap Strategy ETF.” This move was unexpected, given Bitwise’s steadfast ambition to attain ETF endorsement.