On September 22, James Seyffart, an analyst from Bloomberg Intelligence, shared interesting news on platform “X.” Bitwise, the crypto index fund, has decided to change its plans for $BITC.
Originally, they wanted it to be a fund for Bitcoin futures, but now they’re converting it to a Bitcoin and Ethereum futures fund. This decision means the fund will stick to Bitcoin. However, the reason for this change remains unclear.
Seyffart shared a message from Katherine Dowling, the knowledgeable General Counsel of Bitwise which she sent to the Division of Investment Management at the United States Securities and Exchange Commission (SEC).
The message clearly states that Bitwise will not pursue a revision of their strategy through an amendment. Unfortunately, the it doesn’t provide any additional meaningful information beyond what was in the initial submission on August 10.
The insightful analyst adds a wise note of caution, advising against reading too much into this development for now. However, if Valkyrie also withdraws in a similar manner, it could signal hidden shifts in the background, not immediately obvious.
Extended SEC Deliberations on Cryptocurrency ETF Proposal and Gensler’s Cautious Stance
Concurrently, the SEC has chosen to protract its deliberation concerning sundry applications for spot Bitcoin ETFs, a decision rendered on August 31.
Furthermore, the regulatory authority has expressed a preference for a more extended evaluation period. This decision affects submissions from WisdomTree, VanEck, Invesco Galaxy, Wise Origin Bitcoin Trust (by Fidelity), and BlackRock.
As the impending deadline looms large, the crypto community remains vigilant, eagerly awaiting updates regarding cryptocurrency ETFs.
In a related and noteworthy development, Gary Gensler, the current Chairman of the SEC, deftly avoided giving a direct response regarding the approval of spot ETF proposal which occurred during a hearing on September 12 in the esteemed chambers of the U.S. Senate Banking Committee.