Carlos Fernandes Following the deferral of seven spot bitcoin ETFs, Bitwise Asset Management has formally withdrawn its application for the Bitcoin and Ether Market Cap Weight Strategy Exchange-Traded Fund (ETF), according to a filing with the U.S. Securities and Exchange Commission (SEC) dated August 31, 2023. Initially submitted to the SEC on August 3, 2023, the fund’s methodology was based on a five-year diluted market cap, among other qualifying criteria, to determine the weightage of each cryptocurrency in the portfolio.
Due to the substantial market capitalizations of Bitcoin (BTC) and Ethereum (ETH), the proposed ETF would have limited the collective allocation of these digital assets to 75% of the portfolio. Katherine Dowling, Bitwise’s Chief Legal Officer, made no explicit remarks in the most recent filing about the rationale behind the company’s decision to withdraw its application. The formal document states:
“The Trust has decided to discontinue its pursuit for effectiveness of the Fund, and no securities related to the Fund were or will be sold in accordance with the previously filed Post-Effective Amendment to the Trust’s Registration Statement.”
Bitwise was among seven ETF applications, including those from Wisdomtree, Valkyrie, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy, that faced delays in the past week. Despite these developments, Bloomberg’s senior ETF analyst Eric Balchunas and James Seyffart still anticipate a 75% likelihood of spot BTC ETF approval within the year 2023.
It is crucial to differentiate between the now-withdrawn Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF and the company’s spot BTC ETF. The latter is a physically-backed ETF aimed at tracking bitcoin’s price fluctuations. This specific fund aims to offer investors exposure to changes in bitcoin’s market value without the necessity of direct asset ownership.
The intended listing for the Bitwise spot bitcoin ETF was on the NYSE Arca with the ticker symbol “BITW.” Prior to its withdrawal, the ticker for the Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF was planned to be “BITC.”
The withdrawal of Bitwise’s Bitcoin and Ether Market Cap Weight Strategy ETF raises questions and invites discussion. Kindly share your insights and viewpoints on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Bitwise ETF Withdrawal
What is the main focus of the text?
The main focus of the text is the withdrawal by Bitwise Asset Management of its SEC registration for a Bitcoin and Ether Market Cap Weight Strategy Exchange-Traded Fund (ETF).
Who submitted the ETF registration that has been withdrawn?
Bitwise Asset Management submitted the ETF registration that has been withdrawn.
When was the original SEC filing made by Bitwise?
The original SEC filing for the Bitcoin and Ether Market Cap Weight Strategy ETF was made on August 3, 2023.
What was the proposed methodology for determining the weight of cryptocurrencies in the portfolio?
The proposed methodology was based on a five-year diluted market cap, among other qualifying criteria, to ascertain the weightage of each cryptocurrency in the portfolio.
What was the maximum allocation for Bitcoin (BTC) and Ethereum (ETH) in the proposed ETF?
The combined allocation of Bitcoin and Ethereum in the proposed ETF was to be capped at 75% of the portfolio.
Has Bitwise disclosed the reason for the withdrawal?
No, Bitwise’s Chief Legal Officer, Katherine Dowling, did not explicitly state the reason for the withdrawal in the most recent SEC filing.
Were any other ETF applications delayed recently?
Yes, seven other spot bitcoin ETF applications experienced delays in the past week, including those from Wisdomtree, Valkyrie, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy.
What is the estimated probability of a spot BTC ETF approval in 2023, according to Bloomberg’s senior ETF analysts?
According to Bloomberg’s senior ETF analysts Eric Balchunas and James Seyffart, there is a 75% likelihood of spot BTC ETF approval within the year 2023.
Is there another Bitwise ETF that is still under consideration?
Yes, the Bitwise spot bitcoin ETF, a physically-backed ETF that aims to track Bitcoin’s price, is still under consideration. It aspires to be listed on the NYSE Arca under the ticker symbol “BITW.”
What would have been the ticker symbol for the now-withdrawn Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF?
The ticker symbol for the withdrawn Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF would have been “BITC.”
More about Bitwise ETF Withdrawal
- Bitwise Official Website
- U.S. Securities and Exchange Commission (SEC)
- Bloomberg’s ETF Research
- NYSE Arca
- Wisdomtree Official Website
- Valkyrie Investments
- Fidelity’s Wise Origin
- Vaneck Official Website
- Blackrock Official Website
- Invesco Galaxy
7 comments
kinda confused why Bitwise did this. Their methodology seemed solid. But hey, this is crypto, anything can happen.
given the 75% prob of approval mentioned, Bitwise’s move is puzzling to say the least. whats the catch?
Interesting, after all the hype about this ETF, its pulled back. Still, the spot bitcoin ETF might get the green light. Fingers crossed!
Bitwise was one to watch. Their withdrawal is a bummer. But let’s see what happens with their spot BTC ETF. Still hope I guess.
No reason given? That’s suspicious, wonder whats goin on behind the scenes.
Looks like a tricky year for ETFs. 7 others also delayed? Man, the SEC needs to catch up with the times.
So Bitwise pulls out huh? They were lookin’ good for a moment there. Any clues why they changed course?