Crypto News – The exchange-traded fund (ETF) application for Bitwise‘s Bitcoin and Ether Market Cap Weight Strategy, which was initially submitted to the US Securities and Exchange Commission (SEC) on August 3, has been withdrawn in an unexpected turn of events.
Bitwise ETF Application Withdrawn by Bitwise
The SEC victory for Grayscale caused the market to turn positive, but Bitwise seems to be rethinking its approach. The ETF application’s withdrawal caught everyone off guard.
In a recent interview, Bitwise Chief Investment Officer Matt Hougan argued in favor of SEC approval for all ETFs. Based on market capitalization, the ETF sought to invest in either Bitcoin or Ether futures contracts. Around the same time, Bitwise and ProShares worked together to introduce a different ETF.
Bitwise Was One of the First ETF Applicants
The SEC received applications for Bitcoin ETF products from several early asset management companies, including Bitwise. It suggested a BTC-backed ETF following the Bitwise Bitcoin Total Return Index in its January 2019 application to the U.S. Securities and Exchange Commission. This index is calculated based on the value of Bitcoin derived from BTC transactions occurring on exchanges.
In order to give a reliable depiction of the larger cryptocurrency markets, the company’s proposed Bitcoin ETF was said to pull market data from a variety of cryptocurrency exchanges. A physical holding of Bitcoin by third-party custodians would also be required by the company.