Bitwise Asset Management is one of the ETF applicants in the US, that has worked primarily on due diligence this year. In March, it released a report highlighting a grim truth about the cryptocurrency markets: the ‘fake reported volume on Exchanges.’ However, it bore a silver lining to it, as it was revealed that past the fake volume cloud exists a perfectly fine ‘free-market’ of cryptocurrencies.
Bitwise has submitted another report to the SEC (Securities Exchange Commission) suggesting that the trading on ‘selected’ Cryptocurrency Exchanges is small but efficient enough to build an ETF on it.
Global Presence of Trading of Cryptocurrency Exchanges (Research)
Ten Exchanges with Real Volume
Consistent with its previous report, the new research pointed out that the reported volume on only ten Exchanges was published correctly. All the other Exchanges were reporting fake ‘non-economic’ data to gain ranking on CoinMarketCap. This attracts more customers, and the management charges hefty fees for listing as well. Nevertheless, ‘wash trading’ is non-economic; i.e., it does not affect the price of the asset.
Arbitrage Trading Between ‘Ten’ Exchanges Mentioned in Bitwise Report
Moreover, the spot Exchanges mentioned in the report are also running a closely watched price environment in which manipulation is not possible because of Bitcoin’s digital nature which provides an opportunity of immediate action which brings the markets to parity again.
“Arbitrage On Exchanges Has Improved Significantly” It also included the fact that, “The fungibility and transportability of bitcoin create a nearly perfect environment for arbitrage between different trading venues.”
Bitcoin Futures Trading
The report also highlighted that Bitcoin Futures Trading market is significant compared to the actual spot trading volume on Exchanges.