Company Bitwise Asset Management prepared for the Commission on securities and exchange Commission (SEC) presentation, which States that 95% of the volume of trading on unregulated exchanges are fake and devoid of any economic sense.
Presentation from provider cryptonomicon is a Supplement to the application to the SEC to launch exchange-traded Fund based on bitcoin (ETF), which is currently under consideration.
Analytical material starts with the thesis that approximately $6 billion of daily trading volume of the cryptocurrency on the spot market are fake:
“The lion’s share of the claimed exchanges trading volume is devoid of economic sense and is a sham transaction [wash trades]”
According to company representatives, the popular Analytics service CoinMarketCap broadcasts questionable data, “thereby creating a fundamentally false idea” about the true extent of the market.
In Bitwise noted that the market for bitcoin, in fact, “much smaller, more streamlined and adjustable,” contrary to popular belief.
The real volume of $273 million.
Real and state exchanges trading volumes on the version of Bitwise
As an example of the exchange with more or less reliable volumes Bitwise leads Coinbase Pro. According to analysts, the actual daily turnover of this market — $27 million While the company believes that the exchange Coinbene volumes are extremely inflated. Declare this platform daily turnover of $480 million.
The researchers came to the conclusion that the average daily turnover on regulated futures exchanges CME and Cboe are not so small — $85 million at both sites. For comparison, the calculated Bitwise actual trading volume of the largest cryptocurrency exchanges Binance is $110 million.
“In 2018, the bitcoin market has become much more efficient thanks to the launch of futures, development lending and the emergence of large market makers” — analysts stress.
According to the head of the research Department Bitwise Matt Hogan, previously, the SEC has repeatedly emphasized that the application to launch ETF needs to be compelling arguments in favor of the fact that underlying the new financial instruments market needs to be “extremely resistant to manipulation.” The adjustable segment of the market must be of considerable magnitude. Hogan added that the report of his company is designed to demonstrate both.
Given that the application was filed in mid-February, and within 45 days, the regulator will need to approve, deny or request additional time for consideration, information on the decision of the SEC should appear in the next week.
ForkLog previously published material on how a bitcoin exchange manipulate the trading volumes.