Bitwise Trust Fund has withdrawn its application for a Bitcoin and Ethereum Market Cap Weight Strategy exchange-traded fund (ETF) from the U.S. Securities and Exchange Commission (SEC).

Per its withdrawal statement, Bitwise said its “Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.”

This move is a surprise, considering its chief investment officer Matt Hougan urged the SEC to approve all pending ETF applications. In a Bloomberg interview, Hougan stated that the SEC approval of multiple ETFs will “create the most competition, the lowest prices,[and] the best products.”

In the last two months, there has been a notable surge in asset managers’ enthusiasm for cryptocurrency ETFs. Prominent companies such as BlackRock and Bitwise, among others, have filed applications for a Bitcoin spot ETF. Concurrently, the SEC has witnessed a flurry of applications from established financial institutions seeking approval for Ethereum Futures ETFs.

However, the SEC recently postponed its decision on these spot BTC ETF applications, stating the need for additional time to assess the proposed rule change and related concerns carefully. The regulator revealed that the earliest date for its decision would be October.

Despite the delay, market analysts maintain an optimistic outlook, with many expecting the regulatory green light for a spot Bitcoin ETF by year-end.

According to Bloomberg business analysts James Seyffart and Eric Balchunas, the likelihood of approval in the current year is 75%, with a soaring 95% probability predicted for the following year.