Bitwise Withdraws Registration for Bitcoin and Ether Market Cap Weight Strategy ETF

Bitwise Halts Plans for Bitcoin and Ether Market Cap Weight Strategy ETF Launch

Bitwise Asset Management has decided to cancel the launch of its Bitcoin and Ether Market Cap Weight Strategy ETF, as stated in an SEC filing on August 31, 2023. The ETF, which relies on a five-year-diluted market cap and other factors, would have had a maximum allocation of 75% for bitcoin and ethereum. Bitwise was one of the seven ETF filings that experienced a delay this past week.

Bitwise cancels the launch of its Bitcoin and Ether Market Cap Weight Strategy ETF
The proposed ETF would have had a maximum allocation of 75% for bitcoin and ethereum
No justification was provided for the cancellation
Bitwise was one of the seven ETF filings that experienced a delay
There is still a 75% probability of a spot BTC ETF approval in 2023

It’s important to note that the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF is different from their spot BTC ETF. The spot BTC ETF is a physically-backed Bitcoin ETF that tracks bitcoin’s price, while the proposed ETF aimed to provide exposure to the price fluctuations of bitcoin and ethereum without directly holding them.

The Bitwise spot bitcoin ETF is expected to be listed on the NYSE Arca under the ticker symbol “BITW,” while the Bitcoin and Ether Market Cap Weight Strategy ETF would have been listed as “BITC” before it was withdrawn.

Hot Take:

The cancellation of Bitwise’s Bitcoin and Ether Market Cap Weight Strategy ETF is a setback for the cryptocurrency market. However, the delay and cancellation of ETFs do not diminish the overall optimism for the approval of a spot BTC ETF in 2023. Investors and crypto enthusiasts should continue to monitor developments in the ETF space as they can provide new avenues for exposure to cryptocurrencies.