Bitwise Cancels Plans for New Bitcoin and Ether ETF
Bitwise changes its mind on a new Bitcoin and Ether fund, even after other companies had success. What happened and what's next for them
Bitwise has taken back its request to start a new Bitcoin and Ether fund, which they asked the U.S. Securities and Exchange Commission (SEC) to approve on Aug. 3.
Many were hopeful after Grayscale, another company, had a win with the SEC. However, Bitwise decided to change their plan. They said their main goal was to help investors earn money, but they can't promise this will happen with these ETFs.
Recently, Matt Hougan from Bitwise talked to Bloomberg. He hoped the SEC would approve their fund. The fund was going to invest in Bitcoin or Ether based on their market value. Bitwise was also working with another company, ProShares, for a similar fund.
Bitwise made it clear:
“We won’t go ahead with this fund. We haven’t and won’t sell any part of it.”
The SEC is taking more time to decide about Bitcoin funds from many companies, including Bitwise. They might decide in October, but it could also be next year.
Bitwise had tried to get SEC approval for a Bitcoin fund before. They wanted to start a fund that would follow the Bitcoin market. They would get data from many online places where people buy and sell Bitcoin to make sure their fund was accurate. Bitwise also said they would keep actual Bitcoins safe for the fund.
This isn't the first time Bitwise has changed their plans. Earlier this year, they tried to start another fund related to Ethereum, another kind of cryptocurrency. They took back that request after just a week.
