Bitwise CIO Matt Hougan Offers Detailed Insights on Amended Spot Bitcoin ETF Application via Twitter

On September 25, 2023, Matt Hougan, Chief Investment Officer at Bitwise, took to Twitter to provide a comprehensive breakdown of Bitwise’s amended application for a spot Bitcoin ETF.
The goal of the amendment is to address the SEC’s objections to previous spot Bitcoin ETF applications.

Hougan emphasized the need to demonstrate that the CME bitcoin futures market plays a pivotal role in price discovery, surpassing the spot market. He stressed that this is essential to establish the CME as a “regulated market of significant size” for surveillance purposes.

Hougan discussed the academic aspect of the amendment, aiming to clarify the growing body of academic research on price discovery in the bitcoin market. He asserted that every well-designed academic study supports the conclusion that the CME is significant in this regard.

Hougan acknowledged the regulatory challenges facing Bitwise and other applicants. While surveillance sharing agreements with spot exchanges are seen as positive, he cautioned that they might not fully satisfy the SEC’s regulatory requirements.

Bitwise’s Commitment to Research

Hougan highlighted Bitwise’s commitment to original research in their Bitcoin ETF filings. He referenced their 2019 research on identifying fake volume in the spot market and their 2021 white papers demonstrating the CME futures market’s leading role in price discovery.

Hougan concluded the Twitter thread by reaffirming Bitwise’s dedication to achieving SEC approval for a spot Bitcoin ETF. He noted that Bitwise has been working towards this goal for over five years and expressed gratitude to those who have contributed to the effort.