Crypto index fund provider Bitwise Asset Management made a new presentation to the Securities and Exchange Commission (SEC) as it sought to approve its exchange-traded Bitcoin fund (BTC-ETF) project.
In a memorandum of September 17, the SEC released the presentation of Bitwise. The agency also said that she felt the SEC's concerns had been largely eliminated.
The Bitcoin spot market is even more efficient
The presentation briefly summarized the evolution and improvement of the market over the past two years.
First, the spot market has become more efficient. The average Bitcoin price spread on the top ten stock exchanges has declined. In December 2017, this figure was just under 1%, but has since dropped to less than 0.1%.
Institutional Bitcoin Infrastructure in Development
In addition, many new Institutional Bitcoin custody services are being created. They will receive regional licenses to manage and keep Bitcoins of their customers.
At the same time, the volume of bitcoin futures posted on the CME reached a record this year, indicating that the regulated futures market has now "become a regulated market of" considerable size ", wrote Bitwise in its presentation.
The crypto industry reacts by reporting 95% fake volumes
Bitwise also said that, according to a study released earlier this year, 95% of trading volume was counterfeit. Since then, several developments have taken place.
Data providers responded by addressing concerns and taking steps to make the reported data more accurate. Nine stock markets experienced a volume decline of more than 90% and three of the 73 stock exchanges responded in public or in private.
The data models on some other exchanges have been shifted to conform to the actual models observed by Bitwise. But overall, people are now more aware of the existence of fake volumes. Trade is now taking steps to address these concerns.
Globally, the efficiency of the bitcoin and cryptocurrency markets continues to increase, as is the volume of the ten largest exchanges.
Bitwise hopes that this will dispel the SEC's concerns about its Bitcoin ETF and finally get the green light next month. However, SEC chairman Jay Clayton recently reiterated that there needed to be more regulation before bitcoin could be traded on major traditional stock exchanges.