Bitwise Asset Management has withdrawn its proposed exchange-traded fund (ETF) that would have provided combined exposure to Bitcoin and Ethereum, according to a filing made public through the SEC’s EDGAR database. The withdrawal removes a unique multi-asset product from the regulatory pipeline, at least temporarily. The fund was designed to bundle the two largest cryptocurrencies into a single investment vehicle, simplifying portfolio construction for investors seeking broad crypto exposure.
The proposed ETF stood out because most crypto ETFs on the market or under review target a single asset. A combined Bitcoin and Ethereum product represented a logical next step for issuers, reflecting the two assets' dominance of the total crypto market capitalization. Bitwise, a San Francisco-based crypto asset manager registered with the SEC, has been active in the ETF space and manages several crypto-focused investment products. The firm’s decision to withdraw this filing does not signal a retreat from its ETF ambitions; withdrawals are a routine part of the development process, often used to incorporate regulatory feedback or adjust fund structures before resubmission.
Meanwhile, broader market data indicated a dramatic slowdown in crypto investment product outflows. Weekly ETF withdrawals dropped by 81% compared to prior levels, even as the market experienced a fifth consecutive week of net outflows. The deceleration suggests that selling pressure from institutional investors is losing steam. Bitcoin showed stronger relative performance, repeatedly establishing higher highs and higher lows, while Ethereum struggled to sustain recovery attempts and traded with declining volume. This divergence highlights current demand dynamics, with Bitcoin attracting steadier buying interest.
The combination of Bitwise’s ETF withdrawal and the outflow slowdown paints a nuanced picture. While institutional interest in diversified crypto products remains high, the path to approval remains iterative. The easing of outflows, however, could provide a more supportive backdrop for the market. Market participants will be watching for any refiled ETF proposal from Bitwise and further flow data to gauge the next phase of institutional engagement.
