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Bitwise Bows Out: Bitcoin and Ethereum ETF Dreams Shattered

Bitwise, the asset management company based in San Francisco, has withdrawn its application for the Bitcoin and Ethereum Market Cap Weight Strategy Exchange-traded fund (ETF) filed with the SEC. This move comes as a surprise since BTC had a good day, reaching $27,851.82. Bitwise cited uncertainty and a strategic reassessment as reasons for withdrawing the application, urging the SEC to approve all ETFs. The crypto community now awaits the SEC's decision on other ETF applications.

In an unexpected twist, Bitwise, the San Francisco-based asset management company, has made the surprising decision to withdraw its recent application for the Bitcoin and Ethereum Market Cap Weight Strategy Exchange-traded fund (ETF). Just when the crypto community was riding high on Grayscale's victory against the SEC, Bitwise's retreat comes as a shock.

Bitcoin enthusiasts were basking in the glory of a soaring BTC, which surged over 7% to reach an impressive $27,851.82. This surge was fueled by a court ruling that found the SEC had erred in rejecting Grayscale's plea to transform its bitcoin trust into an ETF. However, Bitwise, taking a step back, chose to reevaluate its strategic approach.

Bitwise's ETF withdrawal statement, released on August 31, emphasized the fund's objective of providing investors with capital appreciation. However, the company also acknowledged the inherent uncertainty associated with such investments and expressed its reluctance to pursue the ETF further.

Bitwise's Chief Investment Officer, Matt Hougan, urged the SEC to approve all ETF submissions, emphasizing that lining up multiple ETFs for launch simultaneously would be the best outcome for investors. However, the fate of Bitwise's Bitcoin and Ethereum ETF dreams remains uncertain, as the company has withdrawn its application.

This is not the first time Bitwise has faced setbacks with its ETF aspirations. In January 2019, the company proposed a BTC-backed ETF, which was eventually rejected by the SEC. Bitwise had hoped to track Bitcoin's value by leveraging multiple crypto exchanges and employing third-party custodians. Despite initial rejection, the SEC later reconsidered its decision.

Bitwise's recent ETF withdrawal follows the earlier setback of an Ethereum Strategy ETF application. The company initially submitted the application, but shockingly withdrew it merely a week later, adding another twist to their regulatory journey.

Now, the cryptocurrency community eagerly awaits the SEC's decision on the remaining ETF applications from WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Fidelity. While the SEC has been actively reviewing these applications, the final decision has been continuously delayed. The upcoming deadline for the SEC's decision is mid-October, but further extensions into the next year are entirely possible.

Bitwise's decision to pull the plug on its Bitcoin and Ethereum ETF application has left the crypto world in suspense. Will the SEC's verdict on other applications bring a glimmer of hope for the ETF dreamers? Only time will tell.

In the fast-paced world of cryptocurrency, where uncertainty seems to be the only certainty, Bitwise's withdrawal serves as yet another reminder that the road to ETF approval can be full of twists and turns.

Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.

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