Bitwise has withdrawn its application to launch a Bitcoin (BTC) and Ethereum (ETH) market cap weight strategy exchange-traded fund (ETF).
According to a Securities and Exchange Commission (SEC) report, Bitwise has submitted an application to withdraw the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF.” The company says the fund cannot be assured of achieving its investment objective.
Bitwise Takes a Step Back
Previously, in November 2021, Bitwise withdrew its Bitcoin Futures ETF application to focus more on the spot ETF. However, not much reasoning is available for its latest pullout of the “Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF.”
The SEC Delays Reviews
The development came after the Commission delayed reviewing the listing of seven spot Bitcoin ETFs from the following funds:
- BlackRock
- VanEck
- WiseOrigin
- Invesco Galaxy
- WisdomTree
- Bitwise and
- Valkyrie Digital Assets
On June 22, Bitwise resubmitted its applications for a Bitcoin spot ETF with the SEC. However, the SEC extended the deadline for reviewing Bitwise’s application until Oct. 17.
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Due to the pause from the SEC, the price of Bitcoin is down by around 4.39% in the past 24 hours. As of writing, it is trading at $26,001.
The community has criticized and expressed frustration due to the frequent delays from the SEC. An X (Twitter) user wrote:
“They will delay it as long as possible, probably until 2024.”
While another user wrote:
“Why do they need so long? It’s literally a yes or no. Quit clowning around.”
Many Bitcoin enthusiasts believe the cryptocurrency has proven its growth potential and does not need to rely on ETFs. Bitcoin educator Kashif Raza wrote on X (Twitter):
“Bitcoin doesn’t need an ETF to grow.
ETF markets need Bitcoin to earn and grow.”
The pause from the SEC comes despite Grayscale winning its legal battle against regulators on Aug. 29. Following the court ruling, Grayscale can now proceed with its application to convert its Grayscale Bitcoin Trust to an ETF.
Read more here about the role TradFi still has to play in finance.
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