Bitwise surprises ETH and BTC Market Cap ETFs
Date: 2023-09-01 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Bitwise Trust Fund is no longer a securities market participant, and its application for an exchange-traded fund (ETF) Bitscoin and Ethereum Market Cap Weight Strategy has been withdrawn from the US Securities and Exchange Commission.
In accordance with the withdrawal notice, Bitwise stated that its "Trust no longer intends to achieve the effectiveness of the Fund and certain securities of the Fund have been sold or will be sold in accordance with the provisions of the aforementioned Amendment to the Trust Registration Statement."
The move came as a surprise to me as Matt Hogan, chief investment officer, urged the SEC to approve all pending ETF filings. In an interview with Bloomberg, Hogan said multiple SEC-approved ETFs "will create strong competition and lowest prices" for products.
The last two months have seen a very active upsurge in the enthusiasm of asset managers towards cryptocurrency ETFs. Among others, companies such as BlackRock and Btimes have applied for a Bitcoin spot ETF. Meanwhile, the SEC has witnessed a huge flood of applications from established financial institutions seeking approval for the Ethereum Futures ETF.
Despite this, the SEC has delayed its decision on these BTC ETF spot orders in the recent past. The reason for this was a call to wait for more time to better define the proposed rule change and the problems encountered after its implementation. The regulator said October would be the earliest date for a decision.
However, despite the delays, market analysts continue to be optimistic and hope that by the end of the year a green light will be given to the spot Bitcoin ETF.
According to Bloomberg business analysts James Seyffart and Eric Balciunas: the probability of approval this year is 75%, and a year later it is expected to rise to 95%.
