Bitwise Withdraws Application, A Big Blow To Ethereum ETFs?

In a recent development, asset manager Bitwise has withdrawn its application to transform its existing Bitcoin futures ETF (Bitwise Bitcoin Strategy Optimum Roll ETF) to one that invests in both Bitcoin and Ethereum futures contracts. 
This has raised speculations about the reason for this decision and what it means for the Ethereum futures ETFs projected to launch in October.
Why Bitwise Withdrew Its Application
Reporting this development on his X (formerly Twitter) platform, Bloomberg Analyst James Seyffart stated that the asset manager has chosen to maintain only its Bitcoin exposure following this move. 
Many were more concerned about the reason for this decision. To clarify, Seyffart stated that the Asset manager may have made this decision simply because it doesn’t see the “benefit in having a dual BTC and ETH ETF,” especially considering that their Ethereum futures ETF is expected to launch only a few days after the first one launches. 
Seyffart also believes the firm’s Optimum Roll ETF investors may have preferred only exposure to Bitcoin rather than Bitcoin and Ethereum, which prompted the decision. 
This development comes after Bitwise had withdrawn its application for its Bitwise Bitcoin and Ether Market Cap Weight Strategy ETF, which it filed with the SEC on August 3. The asset manager had made its decision known in a filing to the SEC dated August 31. 
Meanwhile, the filing with the SEC to withdraw its Bitwise Bitcoin and Ether Equal Weight Strategy ETF application is dated September 22.

ETH price struggling to reclaim $1,600 | Source: ETHUSD on Tradingview.com
What Now For Bitwise And Ethereum Futures ETF
It is worth mentioning that Bitwise isn’t backing out of the Ethereum futures ETF race despite these recent developments. The asset manager still has its Bitwise Ethereum Strategy ETF application with the SEC, with the fund seeking to invest in Ethereum futures contracts. 
The withdrawals have also not affected Seyffart’s optimism about the launch of several Ethereum futures ETFs in October as he believes there isn’t much meaning to read into the asset manager’s actions than it being “some sort of product decision.”
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He noted that the only time there may be reason for concern is if Valkyrie were to withdraw its application. Like Bitwise, Valkyrie had also applied to the SEC to transform its Bitcoin futures ETF (Valkyrie Bitcoin Strategy ETF) into a fund that invests in both Bitcoin and Ethereum futures contracts. 
Barring any denial by the SEC, asset managers like Volatility Shares, VanEck, ProShares, Roundhill, and even Bitwise are expected to launch their Ethereum futures ETF in October. 
Based on their respective filing dates, Volatility Shares is set to gain a first-mover advantage, launching on October 12, while others are expected to launch after.