- Bitwise has requested the withdrawal of its Bitcoin and Ether Market Weighted Strategy exchange-traded fund (ETF) application, which was initially submitted to the U.S. Securities and Exchange Commission (SEC) on August 3rd.
- The ETF initially aimed to invest in Bitcoin futures contracts or Ethereum futures contracts, and this selection was determined based on market value.
- The SEC has postponed the review of Bitcoin ETF applications; WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise, and Fidelity’s spot Bitcoin ETF applications have been given a longer period for review.
Bitwise Asset Management, which has attracted attention with its interest in Bitcoin investment products, has chosen to withdraw its application for a Bitcoin and Ethereum futures ETF.
Bitwise Cancels Bitcoin and Ethereum ETF
In an unexpected development, Bitwise has requested the withdrawal of its Bitcoin and Ether Market Weighted Strategy ETF application, which was initially submitted to the U.S. Securities and Exchange Commission (SEC) on August 3rd.
Following Grayscale’s SEC victory, market sentiment turned bullish, and Bitwise seems to be reevaluating its strategy. The withdrawal of the ETF application was an unexpected development, but the application stated the following: “The Fund aims to provide capital appreciation to investors. There is no guarantee that the Fund will achieve its investment objective.”
Bitwise Chief Investment Officer Matt Hougan defended the approval of all ETFs in a recent Bloomberg interview. The ETF initially aimed to invest in Bitcoin futures contracts or Ethereum futures contracts, and this selection was determined based on market value. Bitwise had also partnered with ProShares to launch another ETF during the same period. In the withdrawal announcement, Bitwise stated:
“The Trust no longer seeks to pursue the effectiveness of the Fund, and no securities of the Trust were sold or will be sold pursuant to the Trust’s Registration Statement as amended and supplemented as set forth above.”
SEC Announces Decision on Spot Bitcoin ETFs
The SEC has postponed the review of Bitcoin ETF applications; WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise, and Fidelity’s spot Bitcoin ETF applications have been given a longer period for review. According to an SEC filing dated August 31st, the commission has extended the review period for spot Bitcoin ETF applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise, and Valkyrie, and for BlackRock’s Bitcoin ETF, proposed by Fidelity. The next deadlines for the SEC will be mid-October, but these can also be further postponed until the SEC’s third deadlines in January or the possible final decision dates in March, April, and May of next year.
Bitwise was one of the early asset management firms to apply to the SEC for Bitcoin ETF products. In its January 2019 application, the U.S. securities regulator proposed a BTC-backed ETF that would track the Bitwise Bitcoin Total Return Index, calculated based on BTC transactions on exchanges, to provide a reliable representation of the broader cryptocurrency markets.
The proposed Bitcoin ETF would require pulling market data from a range of cryptocurrency exchanges to ensure a reliable representation of the broader cryptocurrency markets. The company would also require third-party custodians to physically hold the Bitcoins.
This is not the first time Bitwise has withdrawn an application. Earlier this year, it applied for an Ethereum Strategy ETF but withdrew the application just a week later.
