Bitwise bullish on Bitcoin spot ETF after dropping futures ETF plan
The CIO explained why the firm is bullish on the Bitcoin spot ETF and why they dropped their futures ETFs plan.
Bitwise is Asset Management. In the past, they applied for the bitcoin futures ETF with the SEC to get approval but later, the firm withdrew their application.
On 10 November, Matt Hougan- Bitwise chief investment officer- said that the firm is still eager with their Bitcoin Spot ETF product plan and also they will do their best to bring such kinds of products to the United States.
“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”
Matt took the reference of an old Bitcoin ETF filling and said that ‘first bitcoin spot ETFs application was filed by the crypto exchange Gemini in 2013 but their application got rejected by the US SEC agency in 2017’.
Matt asserted that there are many spot ETF applications in the list of SEC and are waiting for regulatory approval and many got rejected. And here Bitwise is doing the same, the team will always do their best to get approval.
Bitwise CIO also said that “Bitcoin ETF approval by the SEC agency is a big step” but there are many reasons behind the withdrawal of the application of Bitcoin ETFs by BitWise.
The most important factor, Bitwise CIO said, was the high cost for the traders on the Bitcoin futures ETF. According to the bitwise analyst, Futures ETF is a price based thing and its price may go up by more than 5-10% over spot price and in that situation, it can end up in high cost for the traders.
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