Bitwise Asset Management Withdraws Application for Bitcoin and Ethereum Market Cap Weight Strategy ETF
Bitwise Asset Management has decided to withdraw its application for a Bitcoin and Ethereum Market Cap Weight Strategy exchange-traded fund (ETF). The application was initially filed with the U.S. Securities and Exchange Commission (SEC) on August 3. Here are the key points to take away from this withdrawal:
1. Increased optimism in the crypto market: Bitwise’s withdrawal comes after Grayscale’s ETF was approved by the SEC, adding to the general positive sentiment in the industry.
2. Market cap-based investment strategy: The ETF planned to invest in futures contracts for Bitcoin or Ethereum, guided by their respective market capitalizations. It aimed to provide a diversified exposure to these cryptocurrencies.
3. Collaboration with ProShares: Bitwise was also working with ProShares to launch another ETF, further demonstrating the company’s commitment to bringing crypto-based ETFs to the market.
4. SEC’s delay on Bitcoin ETF applications: The SEC has been extending its review period for several spot Bitcoin ETF applications, causing uncertainty for financial firms like WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, and Fidelity.
5. Future timeline and delays: The SEC is not expected to make final decisions on Bitcoin ETFs until at least mid-October, and further delays could potentially push this timeline into 2024.
In conclusion, Bitwise’s withdrawal reflects the challenges and uncertainties surrounding the approval of crypto ETFs by the SEC. While the industry remains hopeful, it may take more time before these investment products become available to the public.
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