Bitwise Asset Management has withdrawn its application for a Bitcoin and Ethereum Market Capitalization Strategy ETF, surprising the cryptocurrency community.

The ETF application was initially filed with the U.S. Securities and Exchange Commission (SEC) on August 3rd. It aimed to create an ETF that would invest in either a Bitcoin Futures Contract or an Ethereum Futures Contract based on their market capitalizations.

Bitwise Asset Management’s withdrawal follows Chief Investment Officer Matt Hougan’s call for SEC approval of all ETFs. The timing is raising eyebrows, given the bullish market sentiment, sparked by Grayscale’s recent victory over the SEC.

Investors and analysts are baffled by Bitwise’s abrupt strategy shift. The statement mentions that the Trust won’t pursue Fund effectiveness, and no Fund securities were or will be sold under the Registration Statement’s Amendment.

The statement mentions the fund’s aim of capital appreciation but also states, “There can be no assurance that the Fund will achieve its investment objective.” This isn’t Bitwise’s first ETF withdrawal; earlier this year, they applied for an Ethereum Strategy ETF, planning to invest in front-time and back-time Ethereum Futures.

Bitwise’s ETF Application Withdrawal and Cryptocurrency Investment Landscape Uncertainty

Just a week after filing, Bitwise withdrew the application, fueling doubts about their long-term strategy and commitment to cryptocurrency ETFs. While they withdrew the Bitcoin and Ethereum Market Capitalization Strategy ETF, Bitwise’s Bitcoin Spot ETF is still active.

This leaves room for potential future developments, keeping the crypto community in suspense, awaiting Bitwise’s next move.

The inconsistency between Bitwise’s top executives’ public statements and the company’s actions has created confusion among investors. This inconsistency complicates predictions regarding Bitwise’s future, particularly in the swiftly changing cryptocurrency investment landscape.

The ETF application withdrawal might be seen as a setback, but it could also be Bitwise’s strategic move to reevaluate and come back with a stronger offering.

Bitwise may be acting cautiously due to regulatory challenges and cryptocurrency-related uncertainties. In summary, their withdrawal of the Bitcoin and Ethereum Market Capitalization Strategy ETF application has surprised the cryptocurrency community.

The withdrawal has sparked speculation and debate among investors and analysts. As the crypto community awaits Bitwise’s next move, one thing is clear: the cryptocurrency investment landscape remains unpredictable and exciting.

Read More:

Chinese Court Affirms Legal Protection for Virtual Assets as Recognized Properties

Terra Luna Classic Community Proposes Decentralized Debit Card