- Bitwise has withdrawn its crypto ETF application.
- The move comes as a surprise to many.
- The asset manager has been vocal about crypto ETF approval in the U.S.
In an unexpected move that has puzzled many in the crypto industry, asset management company Bitwise has filed an application with the U.S. Securities and Exchange Commission (SEC) to withdraw its pending Bitcoin and Ethereum market cap ETF approval.
The company filed its Bitwise Bitcoin and Ether Equal Weight Strategy ETF application with the securities regulator on August 3, alongside other prominent asset management firms that also submitted a formal request for Ethereum Futures ETFs.
Seeking Capital Appreciation
While speculations are still unfolding about why Bitwise made such a move, the asset manager noted in the filing that it seeks to provide its investors with capital appreciation and that there is no assurance that the ETF funds would further the investment objective.
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“The Trust no longer intends to seek effectiveness of the Fund, and no securities of the Fund were sold, or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement,” the withdrawal application read.
Bitwise intended to allocate 25% of the fund to Bitcoin and Ether Futures contracts exclusively through a subsidiary registered under the laws of the Cayman Islands. The investment would be made based on the relative market capitalization between the two leading cryptocurrencies.
What’s Next for Bitwise?
This isn’t the first time the asset manager has withdrawn an application for a crypto ETF. On May 10, Bitwise submitted an application for an Ethereum Strategy ETF, only to withdraw it a week later.
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Odds are that the company is revisiting its strategy and might make another application in the future. Bitwise chief investment officer Matt Hougan was quoted in a recent interview with Bloomberg advocating for the SEC to approve all pending crypto ETF applications, arguing that this would open up the industry for more investments and competition.
What does Grayscale’s recent win against the SEC mean for its ETF application? Find out:
Will Grayscale’s Success Prompt SEC to Reevaluate Bitcoin ETFs?
Read this article to understand the influence of ETFs on the success of crypto:
ETFs Aren’t Enough for a Crypto Bull Market. What Else Do We Need?
