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The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/bitcoin-etf-news-bitwises-etf-withdrawal-raises-questions-about-sec-scrutiny/">Bitcoin ETF News: Bitwise’s ETF Withdrawal Raises Questions About SEC Scrutiny</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
Bitwise, a prominent crypto company, has recently withdrawn its application for the Bitcoin and Ethereum Market Cap Strategy ETF from the SEC’s Division of Investment Management, raising questions about their motivations and potential concerns regarding SEC scrutiny. 
This move comes as a surprise, especially considering that Bitwise’s Chief Investment Officer, Matt Hougan, had previously advocated for the approval of all ETFs in a <a href="https://www.bloomberg.com/news/articles/2023-08-31/bitwise-urges-sec-to-greenlight-bitcoin-spot-etfs-all-at-once-as-deadline-looms" rel="noopener noreferrer nofollow">Bloomberg interview</a>. In that interview, Hougan underscored the advantages of approving multiple ETFs simultaneously for market participants while challenging what he perceived as the SEC’s unfair and politically motivated motives. 
The ETF, initially structured to allocate funds based on the relative market capitalization of Bitcoin and Ethereum, had intended to invest in Bitcoin or Ethereum Futures Contracts. Bitwise had also collaborated with ProShares on a similar ETF project. 
<h2 id="why-did-bitwise-redact-its-etf-application-do-they-fear-sec" data-name="why-did-bitwise-redact-its-etf-application-do-they-fear-sec" class="wp-block-heading">Why did Bitwise redact its ETF application? Do They Fear SEC?</h2> 
The precise reasons behind Bitwise’s decision to <a href="https://www.sec.gov/Archives/edgar/data/1928561/000138713123010681/bitwise-aw_083023.htm" rel="noopener noreferrer nofollow">withdraw its ETF application</a> remain shrouded in mystery. The withdrawal statement emphasized the fund’s objective of providing investors with capital appreciation but did not guarantee achieving this goal. It’s worth noting that Bitwise had previously withdrawn an application for the Ethereum Strategy ETF earlier this year, which had plans to invest in Ethereum Futures. The disparity between statements made by Bitwise’s executives and their actions has left investors bewildered. 
Nevertheless, Bitwise’s Bitcoin Spot ETF is still in progress, leaving the crypto community eagerly awaiting further clarification from the company regarding its intentions with these ETFs. Bitwise’s subsequent steps will illuminate its strategic direction in the ETF space. 
Meanwhile, the SEC has postponed its decision on six applications for spot Bitcoin exchange-traded funds (ETFs). These applications, submitted by WisdomTree, VanEck, Invesco Galaxy, Bitwise, Valkyrie, and Fidelity’s Wise Origin Bitcoin Trust, have been granted an extended review period. The SEC now has an additional 45 days, extending its decision-making timeline until October. 
It’s important to note that the SEC will assess these applications to propose rule changes allowing the listing of these investment vehicles. The SEC retains the discretion to approve, deny, or further delay a decision regarding these Bitcoin ETF applications.

Bitcoin ETF News: Bitwise’s ETF Withdrawal Raises Questions About SEC Scrutiny

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