Bitwise Cancels Bitcoin And Ether ETF Launch Plan

Bitwise cancels Bitcoin ETF. (Photo; Doc. Chainbits)

JAKARTA - Digital asset management company Bitwise Asset Management has decided to cancel its planned Exchange-Trad Fund (ETF) launch plan for Market Cap Weight Strategy Bitcoin and Ethereum. This decision was taken after the company previously submitted an application to the US Securities and Exchange Commission (SEC) for the ETF.

Although the exact reasons behind this action are not yet known, Bitwise's head of law, Total Dowling, revealed that the company has postponed its ETF launch plan.

The ETF Market Cap Weight Strategy of Bitcoin and Ether, proposed by Bitwise Asset Management, has been withdrawn from SEC approval on August 31, 2023. Initial applications were submitted to the SEC on August 3, 2023.

This ETF is based on a five-year market capitalization offset by other factors to determine the weights of each cryptocurrency in its portfolio. It is important to note that the allocation in this ETF will be limited to 75% of Bitcoin (BTC) and Ethereum (ETH) market cap at the same time.

Bitwise is one of seven companies that have filed for an ETF that has been delayed recently. Other companies affected include Wisdomtree, Valkyrie, Fidelity's Wise Origin, Vaneck, Blackrock, and Invesco Galaxy. Despite these constraints, senior ETF analyst Bloomberg, Eric Balchunas, and James Seyffart remain at 75% probability for approval of the ETF Bitcoin spot in 2023.

It should be noted that Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF is not a BTC spot ETF. This is a physically supported Bitcoin ETF that monitors the price of Bitcoin. The fund is designed specifically to provide investors with exposure to the price movements of crypto assets without having to hold Bitcoin directly.

Bitcoin spot ETF Bitwise hopes to be listed on the New York Stock Exchange stock exchange with the ticker symbol "BITW." Tickets for Bitcoin and Ether Market Cap Weight Strategy ETF will be "BITC," although the launch plan has been cancelled.