Bitwise withdraws Bitcoin and Ethereum market cap ETF application
In an unexpected turn of events, Bitwise has submitted a request to retract its application for the Bitcoin and Ethereum Market Cap Strategy Ethereum Futures Contracts (ETF), initially filed with the Securities and Exchange Commission (SEC) on Aug. 3.
While market sentiment turned bullish following Grayscale's SEC victory, Bitwise appears to be discreetly reassessing its strategy. The withdrawal for the Bitcoin and Ethereum Market Cap Strategy came unexpectedly; however, in the filing, a statement read, “The fund seeks to provide investors with capital appreciation. There can be no assurance that the fund will achieve its investment objective.”
The timing of the withdrawal application appears peculiar, considering that Bitwise's Chief Investment Officer, Matt Hougan, advocated for SEC approval of all ETFs in a recent Bloomberg interview. The ETF intended to invest in either Bitcoin Futures Contracts or Ethereum Futures Contracts, determined by their relative market capitalization. Notably, Bitwise also collaborated with ProShares to launch another ETF around the same time.
In the withdrawal statement, the asset management company only said,
The SEC has delayed its decision on Bitcoin (BTC) exchange-traded fund applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise and Fidelity. According to the SEC filing, dated Aug. 31, the commission has designated a longer period in which it may review spot Bitcoin ETF applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise and Valkyrie, Wise Origin Bitcoin Trust proposed by Fidelity, as well as BlackRock's Bitcoin ETF. The next set of deadlines for the SEC is in mid-October, but these may also be delayed to the SEC's third batch of deadlines, in
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