Bitwise, a prominent asset manager, has recently withdrawn its application to convert its existing Bitcoin futures ETF into one that invests in both Bitcoin and Ethereum futures contracts.
The decision has led to speculation regarding the reasons behind this move, as well as its implications for the launch of Ethereum futures ETFs predicted for October.
According to Bloomberg analyst James Seyffart, Bitwise made the decision to maintain only its Bitcoin exposure. Seyffart clarified that the asset manager may have simply not seen the advantage of a dual BTC and ETH ETF, especially considering that Ethereum futures ETF is expected to be launched just days after the first ETF.
Seyffart also believes that investors in the company’s Optimum Roll ETF may have preferred to invest solely in Bitcoin, which ultimately influenced the decision.
This development follows Bitwise’s withdrawal of their Bitwise Bitcoin and Ethereum Market ETF application, which was announced in a filing with the SEC on August 31.
Meanwhile, an application to withdraw the Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF was submitted to the SEC, dated September 22.
It is worth noting that Bitwise is still pursuing its Bitwise Ethereum Strategy ETF application, which seeks to invest in Ethereum futures contracts.
Despite these recent developments, Seyffart remains optimistic about the launch of multiple Ethereum futures ETFs in October, suggesting that the actions of asset managers like Bitwise may simply be regarded as “some sort of product decision.” He only sees cause for concern if Valkyrie were to withdraw its application as well. Valkyrie, like Bitwise, has applied to the SEC to convert its Bitcoin futures ETF into a fund that invests in both Bitcoin and Ethereum futures contracts.
Unless the SEC denies these applications, asset managers such as Volatility Shares, VanEck, ProShares, Roundhill, and even Bitwise are expected to launch their Ethereum futures ETFs in October.
Based on their respective filing dates, Volatility Shares is expected to have a first-mover advantage and enter the market on October 12, while others are likely to follow later.
Image source: Moneycontrol, Chart from Tradingview.com