Bitwise, a crypto asset management firm has written a letter to the US Securities and Exchange Commission (SEC). In the letter, it addressed the regulator’s concerns of market manipulation which was cited as one of the reasons the SEC had rejected Bitwise’s Bitcoin exchange-traded fund.

The SEC had earlier in October cited concerns regarding market manipulation and surveillance sharing in the crypto asset market. The agency has mentioned these as the two key areas that need to be addressed for the digital currencies approval. The aforementioned letter was written by CEO, Hunter Horsley; CTO, Hong Kim; COO, Teddy Fusaro; and Global Head of Research, Matt Hougan.

It was stated in the letter that,

“Bitcoin’s inherent fungibility and the market’s distributed nature allowed for effective arbitrage to take place between different trading venues, which helped insulate bitcoin from attempts to manipulate individual markets.”

Bitwise also talked about the current large number of US investors in the Bitcoin market. It stressed on the need for a safe and efficient market. The study that showed that the Grayscale Bitcoin Trust is currently the fifth-largest holding in millennial retirement account was also cited in the letter.

In the letter, Bitwise declared that, it is committed to provide all investors with the ability to access bitcoin in a regulated and familial fund manner.



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