BitWise Asset Management, one of the firms to attempt for a Bitcoin ETF proposal has noted that 95 per cent of the Bitcoin trading volume is fake.However, BitWise is not concerned about faking volumes by exchanges and not concerned much because manipulation happens only in reporting space rather than in the figures itself. The report reads:“The real market for bitcoin is significantly smaller, more orderly, and more regulated than commonly understood. “95% of Bitcoin trading volume is fake and/or non-economic in nature.”BitWise analysed the trading data of nearly 81 crypto exchanges and found 71 of them are suspect in faking the trading volume. The 10 exchanges that report actual trading data are Binance, BitFinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex. The report has blamed coinmarketcap for this fiasco and all the reputed firms like Wall Street Journals and New York Times firms rely on CMC’s data.BitWise analysed the trading volume data of four days in March using its specially designed software programme concluded that out of $6 billion reported daily volume on coinmarketcap, only a tiny fraction was legit – $273 million.According to the report, there are two reasons for this huge discrepancy in data, first, Bitcoin whales don’t report their trading volume data and second, under-the-hood the exchanges that report higher volumes are unrecognizable. Most exchanges inflate their volume with an only motive to enhance prestige and goodwill.With data which cannot be relied upon, there stands a question whether SEC will move forward with ETF proposal or just stay away from it until the market matures a bit and a reliable data comes in.Join the Discussion on Telegram
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