Bitwise Asset Management has withdrawn its application for a Bitcoin (BTC) futures-based exchange-traded fund (ETF) amid a number of such products launching in the United states of america.

While dropping its futures-linked ETF, the firm is still bullish on a spot Bitcoin ETF, which is designed to track Bitcoin direct, Bitwise principal investment officer Matt Hougan announced on Midweek.

Hougan said that Bitwise'southward spot filing remains intact and that the business firm will keep its efforts to launch such a production in the United states of america:

"Ultimately, what many investors want is a spot Bitcoin ETF. We think that's possible. Then Bitwise will continue to pursue that goal, and nosotros will await for other means to help investors go access to the incredible opportunities in crypto."

Hougan emphasized that the first Bitcoin ETF application that was e'er filed was a spot-based ETF by Gemini crypto exchange founders Cameron and Tyler Winklevoss. Filed in 2022, the awarding was denied by the U.S. Securities and Substitution Commission in 2022. "For years, many have worked on this, including the squad hither," he said.

Hougan went on to say that "whatsoever ETF is a big step," referring to multiple Bitcoin futures ETFs receiving the SEC'due south approval and starting trading in October. Even so, at that place are a number of reasons why Bitwise preferred to withdraw its ain application.

The executive cited Bitwise assay suggesting that the Bitcoin futures ETF contango — a situation where the futures cost is college than the spot one — would cost investors five%–10% per year.

Hougan likewise noted that BTC futures ETFs have reportedly soaked up "all available capacity at futures committee merchants." "This will ease over time, but for now, information technology's added even so some other expense. The result? Costs on elevation of costs, plus added complication," he said.

Related: BlockFi files for physically-backed Bitcoin ETF

He stressed that "none of this means that futures-based ETFs are bad," adding that products such as the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF are "thoughtful versions."

As previously reported by Cointelegraph, Bitwise applied for a spot Bitcoin ETF in mid-October, planning to listing the product on the electronic securities substitution NYSE Arca. The application came just a month after the business firm filed for the Bitwise Bitcoin Strategy ETF in September.