Bitwise Withdrawn New Application With Bitcoin Focused Strategy

Key Points:

• Bitwise withdrawn new application to include Ethereum in its ETF, sticking with Bitcoin-only investments.
• James Seyffart suggests Bitwise’s move may be driven by market competition and investor preference for Bitcoin.
• SEC delays decisions on multiple Bitcoin ETF applications, highlighting regulatory uncertainty in the crypto space.

Crypto investment management company Bitwise has decided to withdraw its application to convert the new Bitcoin-linked ETF BITC from a Bitcoin futures fund to a Bitcoin and Ethereum futures fund. This move signifies Bitwise’s commitment to offering investments exclusively related to Bitcoin.

Bitwise Withdrawn New Application to Include Ethereum in Its ETF

Bloomberg ETF analyst James Seyffart offered his insights on the decision, suggesting that Bitwise likely sees limited advantages in having a dual BTC and ETH ETF, especially considering the potential delay in entering the market compared to competitors. Additionally, Bitwise may have investors who prefer exposure solely to Bitcoin.

Earlier, Bitwise surprised the market by requesting the withdrawal of its application for the Bitcoin and ETH Market Cap Weight Strategy ETF, which it had filed with the US Securities and Exchange Commission (SEC) on August 3. The ETF was designed to invest in Bitcoin futures or ETH futures based on market capitalization. Bitwise is also collaborating with ProShares to launch another ETF concurrently.

SEC Delays Cast Shadow as Bitwise Pivots to Bitcoin-Exclusive ETFs

The SEC recently announced a delay in making decisions on applications to open spot Bitcoin ETF funds from several prominent firms, including WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise, and Fidelity.

The next SEC deadline for these decisions is mid-October, but further delays could push the decision into next year, possibly in March, April, or May. Bitwise’s move to focus exclusively on Bitcoin highlights the ongoing regulatory uncertainty surrounding cryptocurrencies in the United States.

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