Bitwise has dropped its application for a BTC future ETF to focus on launching its spot ETF that is better suited for long-term investors, according to a report by beincrypto on Friday.
On Twitter, Bitwise CIO Matt Hougan explained that the reason for the withdrawal was because the spot ETFs are better for long-term investors and costs associated with futures ETFs.
Hougan references Contango when the futures price of an asset is usually more than its spot price. Bitwise analyzed that contango would cost investors nearly 5-10% each year before compounding.
Currently, contango stands over 6%, and the benefits of a futures-based bitcoin EFT do not make it worthwhile.
Hougan concluded that Bitwise would continue towards its core objective of launching a spot bitcoin ETF.
Bitwise released a report detailing why the spot bitcoin ETFs are better than the futures-based bitcoin ETFs. BTC USD down -1.84%