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News

Bitwise Suddenly Withdraws ETFs Application Amid Market Tension

September 1, 2023 - Around 2 mins mins to read

Key Points:

  • Bitwise abruptly withdraws Bitcoin and Ethereum ETF applications from the SEC.
  • The move contrasts with its earlier support for ETF approvals.
  • The SEC delays Bitcoin ETF decisions, with the earliest outcome in October.
Bitwise Trust Fund has taken a surprising turn by withdrawing its application for a Bitcoin and Ethereum Market Cap Weight Strategy exchange-traded fund (ETF) from the U.S. Securities and Exchange Commission (SEC).
Bitwise Suddenly Withdraws ETFs Application Amid Market Tension
Bitwise Suddenly Withdraws ETFs Application Amid Market Tension 2

This move comes in the wake of Grayscale’s recent SEC victory against a spot Bitcoin ETF, potentially prompting Bitwise to reevaluate its strategy.

Bitwise initially filed its application for the ETF on August 3, but in an unexpected twist, they have now withdrawn it. The application stated that the fund aimed to provide investors with capital appreciation but cautioned that there were no guarantees of achieving this objective.

The company clarified in its withdrawal statement that it no longer intended to seek effectiveness for the fund and that no securities of the Fund were or would be sold.

This decision is surprising, especially considering that its Chief Investment Officer, Matt Hougan, had previously urged the SEC to approve all pending ETF applications, believing it would foster competition, lower prices, and produce better products.

In recent months, there has been growing interest from asset managers in cryptocurrency ETFs, with companies like BlackRock and Bitwise filing applications for Bitcoin spot ETFs.

However, the SEC has delayed its decision on these applications, citing the need for more time to assess rule changes and related concerns. The earliest possible decision date is now set for October.

Bitwise was among the first asset management firms to apply for Bitcoin ETF products with the SEC. They initially proposed a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index in January 2019.

In November 2021, the company withdrew its Bitcoin Futures ETF application to focus on the spot ETF. The reasons behind their latest withdrawal of the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF” remain unclear.

It resubmitted its application for a Bitcoin spot ETF on June 22, but the SEC extended the review deadline until October 17. The cryptocurrency ETF landscape continues to evolve as regulatory agencies deliberate on their approval.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin and Ethereum Market Cap

Bitcoin ETF

Bitwise

Grayscale

Matt Hougan

SEC

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Bitwise Suddenly Withdraws ETFs Application Amid Market Tension

Key Points:

  • Bitwise abruptly withdraws Bitcoin and Ethereum ETF applications from the SEC.
  • The move contrasts with its earlier support for ETF approvals.
  • The SEC delays Bitcoin ETF decisions, with the earliest outcome in October.
Bitwise Trust Fund has taken a surprising turn by withdrawing its application for a Bitcoin and Ethereum Market Cap Weight Strategy exchange-traded fund (ETF) from the U.S. Securities and Exchange Commission (SEC).
Bitwise Suddenly Withdraws ETFs Application Amid Market Tension
Bitwise Suddenly Withdraws ETFs Application Amid Market Tension 4

This move comes in the wake of Grayscale’s recent SEC victory against a spot Bitcoin ETF, potentially prompting Bitwise to reevaluate its strategy.

Bitwise initially filed its application for the ETF on August 3, but in an unexpected twist, they have now withdrawn it. The application stated that the fund aimed to provide investors with capital appreciation but cautioned that there were no guarantees of achieving this objective.

The company clarified in its withdrawal statement that it no longer intended to seek effectiveness for the fund and that no securities of the Fund were or would be sold.

This decision is surprising, especially considering that its Chief Investment Officer, Matt Hougan, had previously urged the SEC to approve all pending ETF applications, believing it would foster competition, lower prices, and produce better products.

In recent months, there has been growing interest from asset managers in cryptocurrency ETFs, with companies like BlackRock and Bitwise filing applications for Bitcoin spot ETFs.

However, the SEC has delayed its decision on these applications, citing the need for more time to assess rule changes and related concerns. The earliest possible decision date is now set for October.

Bitwise was among the first asset management firms to apply for Bitcoin ETF products with the SEC. They initially proposed a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index in January 2019.

In November 2021, the company withdrew its Bitcoin Futures ETF application to focus on the spot ETF. The reasons behind their latest withdrawal of the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF” remain unclear.

It resubmitted its application for a Bitcoin spot ETF on June 22, but the SEC extended the review deadline until October 17. The cryptocurrency ETF landscape continues to evolve as regulatory agencies deliberate on their approval.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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