Bitwise was one of the asset managers seeking to introduce spot Bitcoin exchange-traded funds (ETFs) in the U.S.
In a plot twist, Bitwise tendered a request to withdraw bid for the Bitcoin and Ether ETF. This application was previously filed on August 3 with the U.S Securities and Exchange Commission (SEC).
Grayscale Investments’ Victory Over SEC Prompts Bitwise to Reevaluate ETF Application
Despite Grayscale’s SEC victory resulting in an optimistic market sentiment, Bitwise seems to be reevaluating its plan. The ETF application withdrawal was unanticipated. A statement in the filing showed that the fund sought to offer investors capital appreciation, and there was no assurance that this fund would accomplish its investment goal.
Via a recent interview, Matt Hougan, Bitwise’s chief investment officer, supported the Securities and Exchange Commission’s approval of all exchange-traded funds. The ETF intended to invest in futures contracts or Ether futures contracts based on market capitalization. Bitwise and ProShares also partnered to introduce another ETF.
The withdrawal statement showed that the Trust was no longer interested in seeking the Fund’s effectiveness under the Post-Effective Amendment to the Trust’s Registration Statement. In addition, no Fund’s securities were sold or would be sold.
SEC Postpones Decision on Bitcoin ETF Applications
The Securities and Exchange Commission (SEC) has delayed its decision regarding applications for Bitcoin ETF from several firms, including Bitwise, WisdomTree, Valkyrie, BlackRock, Infidelity, Invesco Galaxy, and VanEck. An August 31 filing by the agency shows that it had allocated an extended period to enable it to evaluate spot Bitcoin ETF applications from Invesco Galaxy, WisdomTree, Valkyrie, and Bitwise.
The next group of Securities and Exchange Commission regulations is in mid-October. However, they may also be postponed to the agency’s third batch of deadlines in January or to the ultimate likely decision dates in March, April, and May 2024.
Bitwise was one of the first asset management companies to lodge applications with the Securities and Exchange Commission for Bitcoin ETF products. Its application with the regulator in January 2019 suggested a BTC-supported ETF monitoring the Bitwise Bitcoin Total Return Index computed based on the Bitcoin value originating from BTC transactions happening on exchanges.
Bitwise Withdraw Bitcoin ETF Application Reignite Recalling Ethereum ETF Application
It was believed that the firm suggested Bitcoin ETF would acquire market information from several cryptocurrency exchanges to offer a trusted depiction of the vast cryptocurrency markets. Further, the company would need third-party guardians to hold Bitcoin physically.
The recent withdrawal by Bitcoin is not the first. Earlier this year, an application for an Ethereum Strategy ETF meant to invest in front-time and back-time Ethereum futures was submitted. Nevertheless, the application was withdrawn shortly after.
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