Bitwise Withdraws Bitcoin and Ethereum Market Cap Strategy ETF Application as SEC Delays Bitcoin ETF Decisions
Summary:
Bitwise, an asset management company, unexpectedly withdraws its application for the Bitcoin and Ethereum Market Cap Strategy ETF. This move comes as the SEC delays its decision on several Bitcoin ETF applications. Bitwise's withdrawal indicates a potential reassessment of their strategy, despite their previous advocacy for ETF approval. This is not the first time Bitwise has withdrawn an ETF application, as they previously pulled an application for an Ethereum Strategy ETF.
Bitwise, the asset management company, has made a surprising move by requesting the withdrawal of its application for the Bitcoin and Ethereum Market Cap Strategy Ethereum Futures Contracts (ETF) that was initially filed with the SEC on Aug. 3. This unexpected decision by Bitwise suggests a hidden reconsideration of their strategy, despite the positive market sentiment following Grayscale's recent SEC victory. The withdrawal application states that the fund's objective is to provide investors with capital appreciation, but it cannot guarantee its achievement. Interestingly, this withdrawal comes at a peculiar time, as Bitwise's Chief Investment Officer, Matt Hougan, recently advocated for SEC approval of all ETFs in an interview with Bloomberg. The ETF planned to invest in either Bitcoin Futures Contracts or Ethereum Futures Contracts, based on their respective market capitalization. It is worth noting that Bitwise also collaborated with ProShares to launch another ETF around the same period. In the withdrawal statement, Bitwise simply mentioned that they no longer intended to seek effectiveness for the Fund, and no securities were sold or will be sold as part of the mentioned amendment. The SEC is currently deliberating on Bitcoin exchange-traded fund applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise, and Fidelity. According to an Aug. 31 SEC filing, the commission has extended the review period for spot Bitcoin ETF applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise, and Valkyrie, as well as Fidelity's Wise Origin Bitcoin Trust and BlackRock's Bitcoin ETF. The SEC's upcoming deadlines are scheduled for mid-October, but they might be delayed to its third set of deadlines in January, or even further to the final possible decision dates in March, April, and May next year. Bitwise was among the early asset management firms that had previously submitted applications to the SEC for Bitcoin ETF products. In January 2019, they proposed a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index, which calculates the value of Bitcoin based on its transactions on various exchanges. This ETF aimed to provide a reliable representation of the broader cryptocurrency markets by sourcing data from multiple cryptocurrency exchanges and requiring third-party custodians to hold Bitcoin physically. This recent withdrawal is not Bitwise's first, as earlier this year, they also pulled an application for the Ethereum Strategy ETF just a week after submitting it.
Published At
9/1/2023 7:39:59 AM
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