Well, here’s a twist for ya! Bitwise, which was chomping at the bit to be among the big dogs launching Bitcoin-focused ETFs in the good ol’ US of A, has thrown us a curveball. Out of the blue, they’ve decided to pull back their big application for the Bitcoin and Ether Market Cap Weight Strategy ETF. They’d just gotten the ball rolling with the U.S. Securities and Exchange Commission on August 3rd.
Now, everyone was riding high on cloud nine after Grayscale strutted its stuff and scored a win with the SEC. But Bitwise? They seem to be doing a little soul-searching, scratching their heads, and thinking things over. Their pull-out move caught many off guard, but they spilled the beans in their statement, saying, “We’re aiming to give our investors a chance to see their money grow. But hey, no promises, right?”
Matt Hougan, the head honcho over at Bitwise, had recently been singing praises for the SEC to give a green light to all ETFs during a chinwag on Bloomberg. Their big idea? To sink their teeth into Bitcoin or Ether futures, depending on where the money’s flowing. Oh, and get this: Bitwise was also joining forces with ProShares, looking to bring another ETF into the limelight.
But let’s rewind a bit. Bitwise has been in this game for a hot minute. They were one of the early birds hoping to catch the worm with the SEC, pushing for their Bitcoin ETFs. Back in January 2019, they laid their cards on the table with a plan for a Bitcoin ETF that’d keep tabs on the Bitwise Bitcoin Total Return Index. The whole shebang would be based on the dollar-dollar bills y’all from BTC sales on different exchanges.
Their pitch? To offer up a clear-cut, trustworthy peek into the wild world of cryptocurrency. They were even planning to get a middleman to hold onto the Bitcoins. Kinda like leaving your keys with the valet, ya know?
But here’s the kicker. This ain’t Bitwise’s first rodeo pulling a stunt like this. A while ago, they took a swing at an Ethereum Strategy ETF, dipping their toes into both front-time and back-time Ethereum futures. But faster than you can say “Jack Robinson”, they yanked that application outta there just a week later.
Life’s full of surprises, and the crypto world? Well, it’s no exception!