Bitwise has taken an unexpected step by applying for the withdrawal of its Bitcoin and Ether Market Cap Strategy exchange-traded fund (ETF) applications. This decision follows the SEC’s delay in reviewing spot Bitcoin ETF applications, indicating a possible reevaluation of Bitwise’s strategy.
Bitwise’s Surprising ETF Withdrawal
In a twist that caught many off guard, Bitwise has taken a significant step by requesting the withdrawal of its Bitcoin and Ether Market Cap Strategy exchange-traded fund (ETF) applications. These applications were originally submitted to the United States Securities and Exchange Commission (SEC) on August 3, generating considerable buzz within the crypto investment community.
Positive Vibes After Grayscale’s SEC Victory
The timing of Bitwise’s decision to withdraw its ETF applications aligns with a notable event that has injected positivity into the cryptocurrency market. Grayscale recently secured a victory with the SEC, securing a review of its spot Bitcoin ETF application. This development appears to have prompted Bitwise to reassess its approach to the ETF landscape.
A Sudden Turn of Events
Bitwise’s ETF application, as stated, aimed to provide investors with capital appreciation. However, the unexpected withdrawal application raises questions about the reasons behind this decision. The application itself acknowledges the inherent uncertainty in achieving its investment objective.
Bitwise’s Official Statement
Bitwise, in its withdrawal statement, made its intentions clear, stating, “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.”
SEC’s Role in the Delay
The SEC’s role in this development cannot be overlooked. The regulatory body has opted to delay its decision on spot Bitcoin ETF applications, including Bitwise’s, citing the need for more time for thorough review. This delay potentially provided Bitwise with the opportunity to reconsider its ETF strategy.
Bitwise’s unexpected move and the SEC’s delay in reviewing spot Bitcoin ETF applications have added an element of intrigue to the evolving crypto investment landscape. As the cryptocurrency market continues to witness twists and turns, market participants eagerly await further developments that may shape the future of crypto-focused ETFs.