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Bitwise Withdraws Bitcoin Futures ETF Filing, Citing Cost, Complexity

The asset manager still has a spot Bitcoin ETF filing in the pipeline.

Updated May 11, 2023, 4:08 p.m. Published Nov 11, 2021, 9:20 p.m.

Bitwise Chief Investment Officer Matt Hougan

Bitwise Asset Management has withdrawn the application for its Bitcoin futures exchange-traded fund (ETF) citing what it said are the cost and complexity of such ETFs. The company will instead focus its efforts on its spot bitcoin ETF filing already in the pipeline.

“Our analysis suggested contango (associated with a futures ETF) would cost investors 5%-10% per year, before compounding,” said Matt Hougan, Bitwise Asset Management chief investment officer, in a tweet thread explaining the company’s rationale for the withdrawal.
“Ultimately, what many investors want is a spot bitcoin ETF [that holds bitcoin itself rather than futures]. We think that’s possible,” Hougan said.
The CIO added that, “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.”
The first bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), was approved by the U.S. Securities and Exchange Commission (SEC) in October and is listed on the New York Stock Exchange.

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Bitwise ETFs

Tanzeel Akhtar

Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.