Leading provider of index and beta cryptoasset funds, Bitwise Asset Management, has stated in a White Paper that the notions held by the general public as well as the regulators and administrators regarding the Bitcoin spot market are flawed. They cited different factors responsible for this. This report was presented as a response to the US Securities and Exchange Commission on Friday. The power of arbitrage in the market, according to the Asset Management Firm, has improved dramatically since the year 2018.
They have produced some data to make their point. The most important of which is the average deviation in the price of Bitcoin on the “10 real exchanges” from the consolidated price. These figures have shown a downward trend over the months in 2018. This, according to Bitwise, is an indication of stronger arbitrage between the different firms in the market.
Problem of Exaggerated Data
Another critical point in the report regarding the factors responsible for the misconstruction of the blockchain markets is the sorry fact about wrong data. The sources of data like CoinMarketCap and other aggregators produce data which is inflated and wrong. However, they recognized the fact that CoinMarketCap has taken initiatives to improve transparency and accuracy. Such flawed data is responsible for the public perception that the crypto market is disorderly and inefficient, as per the report.
Retrieving Accurate Data is Possible
The volumes of trade-related data, collected from the real exchanges, fit in perfectly with data from the real world regarding web traffic, blockchain venture investments, and GDP to name a few. In this sense, the company concludes that the real market is pretty stable and has an orderly backing, and the data can be retrieved to establish such correlations. Meanwhile, Bitwise has filed for the listing of a BTC-ETF on the New York Stock Exchange Arca, which is pending with the SEC.