Bitwise Pulls Out of Ethereum ETFs Application Process

Bitwise, an asset manager, has withdrawn its application to convert its existing Bitcoin futures ETF into one that includes both Bitcoin and Ethereum futures contracts.

Bloomberg Analyst James Seyffart reported this decision and suggested that Bitwise may have chosen to stick with Bitcoin-only exposure due to the belief that having both Bitcoin and Ethereum ETFs may not offer significant benefits, especially with the Ethereum futures ETF scheduled for launch shortly after the Bitcoin-focused one.

Bitwise has not abandoned its pursuit of an Ethereum futures ETF, with an application still pending. Other asset managers are also expected to introduce their Ethereum futures ETFs in October, with Volatility Shares set to launch on October 12, gaining an early advantage.

Despite these withdrawals, Seyffart maintains optimism about the launch of several Ethereum futures ETFs in October. He believes there may not be significant implications from Bitwise’s actions and views them primarily as product-related decisions.

Seyffart indicated that the only cause for concern would be if other applicants, like Valkyrie, were to withdraw their applications. Valkyrie, similar to Bitwise, sought to transform its Bitcoin futures ETF into one that invests in both Bitcoin and Ethereum futures contracts.

Barring any SEC denials, asset managers such as Volatility Shares, VanEck, ProShares, Roundhill, and Bitwise are all expected to introduce their Ethereum futures ETFs in October.

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