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Bitwise Explaines Why The Market Is Ready To Launch Bitcoin ETF

A digital asset manager Bitwise to present explaining why the market is ready to launch Bitcoin ETFs on major exchanges. The presentation was published on its website by the US Securities and Exchange Commission (SEC).

The company has three arguments:

  • the effectiveness of the spot market;
  • the availability of institutional-level storage facilities;
  • the growth of the futures market.

According to experts, these theses suggest that the market has already matured for funds traded on the exchange.

Why the market is ready for Bitcoin ETF. Data from a Bitwise presentation.

bitwise data

Bitwise Research Director Matt Hougan told Forbes reporters that the cryptocurrency market has changed a lot over the past few years. According to him, companies like Jane Street and Fidelity dominate the market today.

Note, the publication of the Bitwise presentation does not mean the SEC shares the company's views on the cryptocurrency market. Only today, the head of the Commission, Jay Clayton, said that Bitcoin is not yet ready for listing on traditional exchanges.

However, the presentation was published as part of the response to the Commission's request for public comments on Bitwise Bitcoin ETFs, called the Bitwise Bitcoin ETF Trust. The company is still awaiting a decision on the application to launch the fund, while VanEck and SolidX withdrew their application last week.

Bitwise has applied for the launch of the Bitcoin ETF in early January. If the SEC approves it, shares of the cryptocurrency investment fund will be listed on the NYSE Arca. The company plans to link the fund to the Bitwise Bitcoin Total Return Index, which tracks the dynamics of the Bitcoin exchange rate and its most significant forks. The company plans to store all tokens that will be provided by the fund’s shares at regulated custodial services.

SEC postponed the application review date several times. Now the Commission must make a final decision by October 13th. Meanwhile, Bitwise is not idle: last week, the company engaged the BNY Mellon bank to work on the launch of the Bitcoin ETF, which, among other things, will store private keys for the Bakkt platform.