Bitwise has withdrawn its bitcoin futures ETF application to focus on a spot bitcoin ETF if approved by the SEC.
Bitwise, Chief Investment Officer Matt Hougan says that the company decided to cancel the application because it thinks that spot ETFs have better returns for long-term investors.
Hougan maintains that the firm’s analysis shows that contango could cost investors 5-10% annually before compounding. He views the benefits of bitcoin futures ETFs as not being valuable to the current 6% contango.
SEC has opened the approval of futures-based bitcoin ETFs, with SEC Chair Gary Gensler saying that the federal securities laws provided adequate investor protection. The commission is yet to approve a spot ETF.
The recently approved ProShares bitcoin futures ETF is reportedly performing well, currently approaching its future contracts limit. SEC is receiving many ETF applications, and more approvals are expected.