In a surprise move, Bitwise filed a request to withdraw its Bitcoin and Ethereum market cap-weighted strategy exchange-traded fund (ETF) application, which was originally filed with the U.S. Securities and Exchange Commission (SEC) on Aug. 3.
While sentiment has turned bullish following Grayscale’s SEC win, Bitwise appears to be reevaluating its strategy.this quit The outcome of the ETF application was unexpected; however, in archive“The Fund aims to provide investors with capital appreciation. There can be no assurance that the Fund will achieve its investment objectives,” the statement read.
Matt Hougan, Chief Investment Officer, Bitwise Promoted In a recent Bloomberg interview, the SEC approved all ETFs. The ETF intends to invest in either Bitcoin (BTC) futures contracts or Ethereum (ETH) futures contracts, depending on market capitalization. Bitwise also launched another ETF in partnership with ProShares around the same time.
in withdrawal statementbitwise said:
“Pursuant to the above-mentioned post-effective amendment to the Trust’s registration statement, the Trust no longer intends to seek the validity of the Fund and has not sold or will sell any securities of the Fund.”
The SEC has delayed decisions on Bitcoin ETF applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise and Fidelity. According to the SEC’s Aug. 31 filing, the committee specified longer deadlines for reviewing spot bitcoin ETF applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise and Valkyrie, Fidelity’s proposed Wise Origin Bitcoin Trust, and BlackRock. Bitcoin ETFs. The SEC’s next set of deadlines is in mid-October, but it could also be delayed to either the SEC’s third set of deadlines in January or final possible decision dates in March, April and May next year.
Bitwise was one of the first asset management companies to apply for a Bitcoin ETF product to the SEC.it is In January 2019, U.S. securities regulators proposed a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index, which is calculated based on the value of Bitcoin derived from BTC trades that occur on exchanges.
related: SEC Delays Decision on 6 Bitcoin ETF Spot Applications
The firm’s proposed bitcoin ETF would purportedly draw market data from multiple cryptocurrency exchanges to provide a credible representation of the broader cryptocurrency market. The company also requires third-party custodians to physically hold the bitcoins.
Bitwise’s recent exit is not the first.Earlier this year, it submitted An application for an Ethereum Strategy ETF designed to invest in early and late Ethereum futures.However, asset managers quit Applied in a week.
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