Bitwise: SEC should not worry so much about Bitcoin manipulation

Bitwise Asset Management wrote a new letter to the Securities and Exchange Commission (SEC) in which she stated thatstill hoping to launch a Bitcoin-based ETF.

The document published on Friday is a response of the company to a 112-page refusal and an attempt to dispel the SEC's doubts about the cryptocurrency market's exposure to manipulation.

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In particular, company representatives argue thatBitcoin is “uniquely” resistant to manipulation, since its price is set in the open market. Conventional markets, in contrast, “rely on coordinated pricing,” resulting in incidents like the London Interbank Supply Rate (LIBOR) scandal.

“The inherent interchangeability of bitcoin andthe distributed nature allows for the efficient implementation of arbitrage operations between various trading platforms. This protects Bitcoin from attempts to manipulate certain markets. ”, - representatives of the company noted.

In the context of a data exchange requirementBitwise stressed that its partner NYSE Arca has relevant agreements with CME. In addition, the reference rate used by CME for futures calculations relies on certain rules that reduce potential market manipulation.

Bitwise also stressed that by nowof time, many American investors are investing in bitcoin. Therefore, there is a “critical need” for safe and effective tools to appear on the market.

The company cited a recent studyCharles Schwab, according to which millennials invest more in bitcoins through the Grayscale Bitcoin Trust, than in shares of Disney, Netflix, Microsoft and other well-known companies.

Recall that the SEC will reconsider the Bitwise ETF application from Bitwise.