Bitwise has filed an amendment to its Bitcoin spot ETF application, arguing against the Securities and Exchange Commission’s (SEC) rationale for rejecting Bitcoin spot ETFs. The firm claims that the CME Bitcoin futures market can serve as a “regulated market of significant size” for market surveillance purposes. The SEC argues that the CME futures market isn’t large enough or related enough to Bitcoin’s spot market to prevent manipulation. Bitwise conducted a study in 2021 that found the CME futures market accounted for a significant portion of Bitcoin’s price discovery, supporting its relevance for surveillance-sharing agreements. The SEC recently lost a lawsuit with Grayscale over the approval of futures ETFs while rejecting spot ETFs, prompting the need for solid arguments to address the relationship between CME futures and spot prices.

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