Bitwise Withdraws BTC & Eth Strategy ETF Application

In a shocking twist of events, Bitwise filed to withdraw its Bitcoin and Ethereum Market Cap Strategy ETF application filed with the Securities and Exchange Commission (SEC) on the 3rd of August. The timing for the withdrawal application seems off because recently, the Chief Investment Officer of Bitwise, Matt Hougan, urged the SEC to green-light all ETFs in a recent interview with Bloomberg.  

The ETF aimed to allocate funds into either Bitcoin Futures Contract or Ethereum Futures Contract based on the relative market capitalization between the two. Bitwise even partnered with ProShares to create another ETF during the same time period.

Also Read: Breaking: US SEC Delays Decision on WisdomTree Bitcoin ETF Application

What Caused Bitwise To Redact Its ETF Application?

Despite the bullish sentiments in the market after Grayscale’s victory over the SEC, Bitwise seems to be silently reconsidering its plan of action. The withdrawal for the Bitcoin and Ethereum Market Cap Strategy was a surprise; however, in the filing, a statement read, “The Fund seeks to provide investors with capital appreciation. There can be no assurance that the Fund will achieve its investment objective.”

In the withdrawal statement, the asset management company only said, “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.”

It is not the first ETF application that Bitwise has withdrawn. Bitwise filed an application for the Ethereum Strategy ETF earlier this year. The ETF aimed to invest in front-time and back-time Ethereum Futures. However, the asset manager withdrew the ETF just a week after the filing.

Understanding what Bitwise has in store for the crypto community is complicated. The contradiction between the statements of the crypto asset management firms Chief officers and its actions creates confusion among investors. However, it is worth noting that the the Asset Manager’s Bitcoin Spot ETF is still very much in play. We eagerly await the next move by Bitwise and shed some light on its plans with the ETFs.

Also Read: Breaking: Bitwise Revises Bitcoin Futures ETF To Bitcoin And Ether Strategy ETF