In a bold move aimed at gaining regulatory acceptance, the NYSE Arca Exchange has tabled a revamped application proposing the listing of the Bitwise Bitcoin exchange-traded fund (ETF) Trust. This nascent plea is enriched by an intense academic theorization aimed squarely at subduing the deep-rooted concerns held by the Securities Exchange Commission (SEC) regarding Bitcoin spot ETFs.
Diving in-depth, the NYSE’s comprehensive, 40-plus page Bitwise filing takes the crux of the SEC’s critiques on board; the reference to an ‘inconclusive’ academic feed backing preceding Bitcoin ETF appeals. The document paints a persuasive historical perspective, reflecting on the SEC’s acceptance of two Bitcoin futures ETFs under the Securities Act of 1933 as recently as this year. This green light, the NYSE contends, came after the SEC were assured that the Chicago Mercantile Exchange (CME) Group‘s diligent surveillance mechanisms were up to effectively detecting and counteracting any manipulation of both the CME Bitcoin futures market and the price of associated futures ETFs.
Juxtaposing this, Bitwise strongly rejects the idea that academic sentiment aligning spot and futures is fragmented. They firmly postulate a majority consensus among meticulously conducted studies that indicate the CME futures market has a commanding influence over the spot market. Furthermore, Bitwise affirm that a surge in spot Bitcoin ETF trade wouldn’t significantly distort CME futures market prices unless spot market prices are also drastically impacted. The reasoning — a strong correlation and arbitrage bond between Bitcoin futures and spot prices.
Delving into the fray, Bitwise’s CIO, Matt Hougan, expressed his skepticism on X about the SEC’s historical repudiation of spot Bitcoin ETFs. He underscored the profound significance of Grayscale’s recent victory over the SEC for the acceptance of future appeals. Nevertheless, he also cautioned about potential fallout if the SEC were to challenge the court’s decision.
Hougan elucidated Bitwise’s modified petition as an endeavor to dispel misleading conjecture concerning the expanding academic trove on Bitcoin market price exploration. The revised application, he claimed, makes a robust case that the CME is as crucial to spot as it is to future’s ETFs.
While the SEC may have previously shrugged off such reasoning, the court’s ruling on the Grayscale case could signal a turning point. Notably, Bitwise’s revised application represents the third attempt to get a spot Bitcoin ETF approved, following the rise of Grayscale over the SEC in the U.S. Federal Court of Appeal. But the disparity in opinion between the crypto communities, who view Grayscale’s court ruling as a triumph for digital asset landscape, and the school of thought that the ruling doesn’t necessarily assure spot Bitcoin ETF approval, remains to be seen. However, amidst the uncertainty, Bitwise remains hopeful, banking on their detailed and astute proposal to sway the SEC.
Source: Cryptonews
