Bitwise Asset Management, an established cryptocurrency index fund, has recently made it clear that it has no association with Bitwise Industries, a startup undergoing charges by the United States Securities and Exchange Commission (SEC).
Distancing From Controversy: Bitwise Asset Management’s Stance
The charges against Bitwise Industries and its founders, Irma Olguin Jr. and Jake Soberal, appear to be severe. These include wire fraud and misleading investors to secure $100 million in funding. Allegations of falsifying documents raise concern, given the serious nature of such charges in the financial industry. The similarity in names between the two entities has led to confusion, where Bitwise Asset Management’s logo was mistakenly used in discussions about the charges against Bitwise Industries.
In response to the growing confusion, the asset manager took swift action. The San Francisco-based company released a statement to clear the air earlier today. The statement highlighted that Bitwise Asset Management, known as America’s largest crypto index fund, has never connected with the Fresno-based Bitwise Industries, now a “defunct” technology company.
Challenging The SEC: Bitwise’s Advocacy for Spot bitcoin ETF Approval
While Bitwise Asset Management itself has had issues with the SEC in the past, the asset manager, a part of the applicants of the yet-to-be-approved spot bitcoin ETF, has recently challenged the SEC’s stance with some academic insights, questioning the rationale behind the SEC’s reluctance to approve their spot bitcoin (BTC) fund.
Recent filings with NYSE Arca offer a counterargument, reviewing all eleven of the SEC’s disapproval orders to clarify the academic perspective. This effort demonstrates that the relationship between markets isn’t as uncertain as the SEC suggests.
The asset manager’s analysis, grounded in academic research, consistently indicates that the Chicago Mercantile Exchange (CME) futures market leads in price discovery over the spot market, contrary to the SEC’s apprehensions about market manipulation. According to the document, this conclusion is backed by extensive engagement with the SEC staff over nearly two years and supported by a detailed 107-page white paper, reinforcing the asset manager’s assertion of a more resilient bitcoin market than the regulator perceives.
### News source: bitcoinist.com