In a recent development asset manager Bitwise has withdrawn its application to transform its existing Bitcoin futures ETF (Bitwise Bitcoin Strategy Optimum Roll ETF) into one that invests in both Bitcoin and Ethereum futures contracts.
This has sparked speculation about the reason for this decision and what it means for the Ethereum futures ETFs that are expected to grow. launch in October.
Why Bitwise withdrew its application
Bloomberg analyst James Seyffart reports this development on his X platform (formerly Twitter). declared that the asset manager has chosen to retain only its Bitcoin exposure after this step.
Many were more concerned about the reason for this decision. To clarify, Seyffart stated that the asset manager may have made this decision simply because it doesn’t see the “benefit of having a dual BTC and ETH ETF,” especially considering that their Ethereum futures ETF is expected to launch just a few days later launched. the first is launched.
Seyffart also believes that the company’s Optimum Roll ETF investors may have preferred exposure only to Bitcoin over Bitcoin and Ethereum, which led to the decision.
This development comes after Bitwise did so withdrawn his application for his Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF, which filed with the SEC on August 3. The asset manager had announced its decision in an August 31 filing with the SEC.
Meanwhile, a filing has been filed with the SEC to withdraw its Bitwise Bitcoin and Ether Equal Weight Strategy ETF application dates from September 22.
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What next for Bitwise and Ethereum Futures ETF
It is worth mentioning that despite these recent developments, Bitwise is not withdrawing from the Ethereum futures ETF race. The asset manager is still there Bitwise Ethereum Strategy ETF filing with the SEC, where the fund plans to invest in Ethereum futures contracts.
The recordings also had no influence on Seyffart’s optimism about the launch of several Ethereum futures ETFs in October, believing there isn’t much point in reading the asset manager’s actions other than it being “some kind of product decision.”
He noted that there could only be cause for concern if Valkyrie were to withdraw his application. Like Bitwise, Valkyrie had that too applied to the SEC to convert its Bitcoin futures ETF (Valkyrie Bitcoin Strategy ETF) into a fund that invests in both Bitcoin and Ethereum futures contracts.
Barring any denial by the SEC, asset managers like Volatility Shares, VanEck, ProShares, Roundhill and even Bitwise are expected to launch their Ethereum futures ETF in October.
Based on their respective filing dates, Volatility Shares will gain a first-mover advantage, launching on October 12, while others are expected to launch afterward.
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