My Opinion

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Shock: 95 percent of all Bitcoin sales are fictitious!

The Bitcoin has a dubious reputation. And rightly so, as a study shows: According to this, not only the currency itself, but also the bulk of the stock market transactions with it are virtual. The curious thing: Originally, the client of the study wanted to bring out an ETF (Exchange Traded Fund) on Bitcoin.

One already guessed it, now shows an opinion: Irregularities are in the Bitcoin business no exception, but rather the rule. This is the case in particular with regard to the turnover at various swap exchanges: Most of them are fictitious transactions. A whopping 95 percent of all trading volumes on Bitcoin exchanges are pure bluff!

Bitwise wants to launch an ETF on Bitcoin. So far, the US Securities and Exchange Commission had always rejected such plans. Standard argument: crypto exchange places are contrary to official stock exchanges not regulated markets, which are opening doors and gates for manipulations. The request of Bitwise was also rejected in the meantime, despite the report - or perhaps because of it.

Also, the crypto-currency-focused asset manager Bitwise is noteworthy. Because the company chose a risky and clever strategy to obtain the approval of a Bitcoin ETF from the US Securities and Exchange Commission.

Curiously, Bitwise has prepared the report to prove the integrity of Bitcoin. This has been at least partially successful: The asset managers were able to prove the report (more than 200 pages) that Bitcoin are traded on the ten major core exchanges without fictitious transactions. Nevertheless, the result is devastating: Instead of the trading volume reported by various Bitcoin brokers of a daily volume of 11 billion US dollars during April, the transactions made according to the Bitwise study, only 554 million US dollars.

The SEC superiors say that groups or individuals who have huge amounts of bitcoins could manipulate the market even if prices were calculated only from the average of the ten "clean" exchanges. In a concerted action, they could succeed in attacking and manipulating several exchanges simultaneously. Another objection: even though, as stated by Bitwise, there are stock exchanges that function properly, the other hubs could still influence Bitcoin prices on these reputable exchanges. Bitwise failed to demonstrate that the ten stock exchanges identified as being efficient are shielded by the others in some way.

The SEC rejection for the request was given on more than 100 pages: Self-Regulatory Organizations; NYSE Arca, Inc.; Order Disapproving a Proposed Rule Change, as Modified by Amendment No. 1, Relating to the Listing and Trading of Shares of the Bitwise Bitcoin ETF Trust Under NYSE Arca Rule 8.201-E