Bitwise Asset Management, a prominent player in the cryptocurrency investment landscape, has sent shockwaves through the crypto community by withdrawing its Bitcoin and Ethereum Market Cap Strategy ETF application.

The company has decided to withdraw its application for a Bitcoin and Ethereum Market Cap Strategy ETF, a move that contradicts recent statements made by its Chief Investment Officer, Matt Hougan. 

Bitwise Bitcoin and Ether market cap ETF initial application

Bitwise had initially filed its application with the U.S. Securities and Exchange Commission (SEC) on August 3rd, intending to create an ETF that would allocate funds into either a Bitcoin Futures Contract or an Ethereum Futures Contract based on their relative market capitalization. This strategy was a unique approach to cryptocurrency ETFs and garnered attention within the industry.

What’s off about Bitwise’s timing?

What makes this withdrawal even more puzzling is the timing. The cryptocurrency market has been experiencing bullish sentiment, particularly after Grayscale’s recent victory over the SEC. 

This victory was a positive development for the industry, leading many to believe that the SEC might be more inclined to approve cryptocurrency-related ETFs. Bitwise’s sudden withdrawal contradicts this optimism.

Bitwise’s Official Statement

Bitwise’s official withdrawal statement clarified the reasons behind the decision. It stated, “The Trust no longer intends to seek effectiveness of the Fund, and no securities of the Fund were sold or will be sold, according to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.” 

The statement did mention the fund’s aim to provide investors with capital appreciation but added, “There can be no assurance that the Fund will achieve its investment objective.”

Repeated Withdrawals Raise Questions

Bitwise ETF withdrawal Bitcoin ETF Ether market cap ETF raises question image

This isn’t the first time Bitwise has withdrawn an ETF application. Earlier in the year, the company applied for an Ethereum Strategy ETF designed to invest in both front-time and back-time Ethereum Futures. 

However, just a week after filing, Bitwise decided to withdraw the application. These repeated withdrawals have raised questions about the company’s long-term strategy and commitment to launching cryptocurrency-based ETFs.

What’s Next for Bitwise ETF and the Crypto Community?

Despite the withdrawal of the Bitcoin and Ethereum Market Cap Strategy ETF application, Bitwise’s Bitcoin Spot ETF is still in play. This leaves room for future developments, keeping the crypto community on its toes as they eagerly await Bitwise’s next move.

While the reasons for the withdrawal remain unclear, it has sparked speculation and debate among investors and market analysts. The contradiction between Bitwise’s public statements and actions has created confusion, making it challenging to predict the company’s future moves in the rapidly evolving landscape of cryptocurrency investments. 

As the crypto community eagerly awaits Bitwise’s next steps, one thing is certain: the world of cryptocurrency investments remains as unpredictable and exciting as ever.