BTC
by BSCN
September 1, 2023
Bitwise had been one of the early advocates for SEC approval of ETFs, highlighting their potential for market growth.
Summary
In a surprising twist, Bitwise, a leading asset management firm, has officially requested the withdrawal of its Bitcoin and Ether Market Cap Weight Strategy exchange-traded fund (ETF) application. This unexpected move comes after the initial filing with the United States Securities and Exchange Commission (SEC) on August 3.
Bitwise, like many others, had been eyeing the launch of spot Bitcoin exchange-traded funds in the United States.
“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,” said Bitwise.
Bitwise's Chief Investment Officer, Matt Hougan, had been an advocate for SEC approval of ETFs, emphasizing the potential for market growth. The ETF was designed to invest in either Bitcoin or Ether futures contracts, depending on market capitalization, and it was developed in collaboration with ProShares, another leading asset manager.
Notably, Bitwise clarified that no securities of the Fund were sold or would be sold as part of the withdrawal process. The SEC has recently delayed decisions on several Bitcoin ETF applications from various entities, including WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, and Fidelity.
Bitwise was among the early entrants seeking SEC approval for Bitcoin ETFs, with its initial application in January 2019 proposing a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index, which derives its value from BTC transactions on exchanges.
With the SEC's forthcoming deadlines in mid-October and potential extensions into 2024, the fate of Bitcoin ETFs in the U.S. remains uncertain.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCN. The information provided in this article is for educational and entertainment purposes only and should not be construed as investment advice, or advice of any kind. BSCN assumes no responsibility for any investment decisions made based on the information provided in this article. If you believe that the article should be amended, please reach out to the BSCN team by emailing [email protected].
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