1 year ago
In an unexpected crook of events, Bitwise has submitted a petition to retract its exertion for the Bitcoin and Ethereum Market Cap Strategy Ethereum Futures Contracts (ETF), initially filed with the Securities and Exchange Commission (SEC) connected Aug. 3.
While marketplace sentiment turned bullish pursuing Grayscale's SEC victory, Bitwise appears to beryllium discreetly reassessing its strategy. The withdrawal for the Bitcoin and Ethereum Market Cap Strategy came unexpectedly; however, successful the filing, a connection read, “The money seeks to supply investors with superior appreciation. There tin beryllium nary assurance that the money volition execute its concern objective.”
The timing of the withdrawal exertion appears peculiar, considering that Bitwise's Chief Investment Officer, Matt Hougan, advocated for SEC support of each ETFs successful a caller Bloomberg interview. The ETF intended to put successful either Bitcoin Futures Contracts oregon Ethereum Futures Contracts, determined by their comparative marketplace capitalization. Notably, Bitwise besides collaborated with ProShares to motorboat different ETF astir the aforesaid time.
In the withdrawal statement, the plus absorption institution lone said,
“The Trust nary longer intends to question effectiveness of the Fund and nary securities of the Fund were sold, oregon volition beryllium sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.”The SEC has delayed its decision connected Bitcoin (BTC) exchange-traded money applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, Bitwise and Fidelity. According to the SEC filing, dated Aug. 31, the committee has designated a longer play successful which it whitethorn reappraisal spot Bitcoin ETF applications from WisdomTree, VanEck, Invesco Galaxy, Bitwise and Valkyrie, Wise Origin Bitcoin Trust projected by Fidelity, as good arsenic BlackRock's Bitcoin ETF. The adjacent acceptable of deadlines for the SEC is successful mid-October, but these whitethorn besides beryllium delayed to the SEC's 3rd batch of deadlines, successful January, oregon to the last imaginable determination dates successful March, April and May of adjacent year.
Bitwise was among aboriginal plus absorption firms that lodged applications with the SEC for Bitcoin ETF products. Its Jan. 2019 exertion with the U.S. securities regulator projected a BTC-backed ETF tracking the Bitwise Bitcoin Total Return Index, which is calculated based connected the worth of Bitcoin derived from BTC transactions taking spot connected exchanges.
Related: SEC delays determination connected 6 spot Bitcoin ETF applications
The company’s projected Bitcoin ETF was touted to gully marketplace information from a fig of cryptocurrency exchanges successful an effort to supply a trusted practice of the wider cryptocurrency markets. The steadfast would besides necessitate third-party custodians to physically clasp Bitcoin.
Bitwise's caller withdrawal isn't their first. Earlier this year, they submitted an exertion for the Ethereum Strategy ETF, designed to put successful some front-time and back-time Ethereum Futures. However, the plus manager pulled this ETF conscionable a week aft submitting the application.
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