Cryptocurrency asset manager Bitwise has taken another stab at launching futures-based Bitcoin ETF
Bitwise, one of the top cryptocurrency asset managers, has refiled its application to launch a Bitcoin futures exchange-traded fund (ETF).
Its proposed fund would invest in Bitcoin futures contracts exclusively through a wholly-owned subsidiary that is organized under the laws of the Cayman Islands.
Bitwise withdrew the application last November due to how costly and complex the proposed product is. The proposal was initially filed last September.
ProShares launched the very first Bitcoin futures ETF in the U.S. last October. Valkyrie introduced a similar offering shortly after that.
While the ProShares Bitcoin Strategy ETF (BITO) was a tremendous success during the first week of its launch, the hype quickly fizzled out due to rapidly declining cryptocurrency prices.
As reported by U.Today, BITO now ranks among the worst-performing ETFs of all time, falling by more than 70% during its first year of trading.
Earlier this year, ProShares launched an ETF that allows users to profit off declining cryptocurrency prices.
Despite approving several Bitcoin futures ETFs, the SEC is yet to greenlight a spot-based product, citing oft-repeated concerns about market manipulation.
Bitwise’s application for a spot Bitcoin ETF has been denied by the securities regulator.
Grayscale, a subsidiary of Digital Currency Group, has already launched a legal challenge to reject the SEC’s request to convert the company’s Bitcoin trust into an ETF.
Bitwise Chief Compliance Officer Katherine Dowling did not rule out suing the SEC for shooting down its Bitcoin ETF filing. Litigation could potentially help to gain more regulatory clarity.
Source: https://u.today/new-bitcoin-futures-etf-application-filed-by-bitwise