‘Too costly for investors’, Bitwise withdraws Bitcoin futures ETF application
Bitwise Asset Management has decided against introducing its very own Bitcoin Futures ETF, a move explained in a series of tweets by Bitwise’s chief investment officer Matt Hougan.
1/ Today, @BitwiseInvest withdrew its application to list a bitcoin *futures* ETF. (Our spot filing remains.)
Thought I’d share our thinking.
A thread…
— Matt Hougan (@Matt_Hougan) November 10, 2021
When Gary Gensler displayed a positive stance towards Bitcoin futures ETF, it took no longer than a week for companies to file applications for one. And while the first Bitcoin ETF did quite well on the Arca NYSE, Bitwise seems to have other plans.
The company announced on Thursday that it has withdrawn its Bitcoin Futures ETF filing citing reasons such as cost and complexity linked with the product. “Our analysis suggested contango would cost investors 5-10% per year, before compounding,” wrote Hougan on Twitter.
Meanwhile, the CIO explained that the company will focus its efforts on its spot Bitcoin ETF application, which Bitwise applied for in October. Hougan noted:
“Ultimately, what many investors want is a spot Bitcoin ETF. We think that’s possible. So Bitwise will continue to pursue that goal, and we will look for other ways to help investors get access to the incredible opportunities in crypto.”
Currently, there are over dozens of spot Bitcoin ETF applications waiting for approval by the US SEC. However, the regulatory body has already approved some Bitcoin futures ETF applications, the first one being ProShares filing.
The post ‘Too costly for investors’, Bitwise withdraws Bitcoin futures ETF application appeared first on Our Bitcoin News.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow