Bitwise Wrote an Open Letter to the SEC
Bitwise Asset Management employees sent another letter to the SEC, explaining why they still want to launch Bitcoin ETF. This letter, in fact, is a response to the recent regulator’s refusal, sent to Bitwise on 112 pages. In their answer, Bitwise experts highlighted that due to the fact that the price of Bitcoin is set in the open market, it is quite resistant to manipulation, whereas traditional markets, by contrast, depend on coordinated pricing, which can lead to incidents like LIBOR. “The interchangeability inherent in Bitcoin and the distributed nature make it possible to effectively carry out arbitration operations between various trading platforms. This protects Bitcoin from attempts to manipulate in certain markets” the company said. Regarding the exchange of market monitoring data, Bitwise said that the NYSE Arca partner has an agreement with the CME. Also, they emphasised that the referral rate, used on the CME site, relies on clear rules that significantly reduce the possibility of manipulation. Bitwise experts have one more argument in favor of the Bitcoin ETF, they claim there is a large number of investors interested in digital coins in the United States. Therefore, there is an urgent need to launch safe and effective tools for this type of asset at this point in time. Recall, the US Securities and Exchange Commission once again postponed the launch of Bitcoin ETF.