Key Takeaways
- • Bitwise filed a Form RW with the US SEC on June 16, 2026, formally withdrawing its S-1 registration statement for a proposed combined Bitcoin & Ethereum ETF filed in November 2024, citing that the transaction "was ultimately not effectuated" with no shares sold or pending.
- • The withdrawal reflects intensifying competition in the crypto ETF space, including Morgan Stanley's recent Bitcoin ETF (MSBT) launch, which pressured Bitwise's strategic priorities despite existing strong performance in its standalone Bitwise Bitcoin ETF (BITB) with $2.45 billion in net AUM and Bitwise Ethereum ETF (ETHW) with $198.06 million in net AUM.
- • Bitwise simultaneously accelerated its pivot toward Hyperliquid (HYPE) exposure, purchasing 77,097 HYPE tokens valued at $5.18 million on June 16, bringing its total HYPE holdings to 428,490 tokens worth $31.59 million, now the firm's fourth-largest holding after Bitcoin, Solana, and Ethereum.
- • The HYPE acquisition reflects Bitwise's strategic reallocation toward emerging decentralized crypto assets and aligns with the firm's May 2026 launch of spot ETFs tracking HYPE indexes in partnership with 21Shares, capitalizing on growing institutional interest in alternative crypto exposure beyond legacy digital assets.
Summary
Crypto asset manager Bitwise has formally terminated its proposed Bitcoin & Ethereum ETF initiative, filing a withdrawal of its S-1 registration statement with the US Securities and Exchange Commission on June 16, 2026. The filing, submitted via Form RW under Rule 477 of Regulation C, references the original S-1 registration filed November 26, 2024, and an amendment filed June 26, 2025. According to Bitwise's SEC submission, the fund sought to provide pooled exposure to Bitcoin and Ethereum holdings but ultimately was not pursued, with no shares issued or sold under the registration statement.
The withdrawal decision reflects mounting competitive pressures within the institutional crypto ETF market. Bitwise already maintains significant presence in the sector through its standalone Bitwise Bitcoin ETF (BITB), which commands $2.45 billion in net assets under management, and its Bitwise Ethereum ETF (ETHW), which holds $198.06 million in AUM. The combined Bitcoin & Ethereum vehicle appears to have become strategically redundant given this existing infrastructure. Recent market entrants, including Morgan Stanley's Bitcoin ETF (MSBT) launch, have further intensified competition and may have influenced Bitwise's decision to consolidate resources rather than pursue the combined product.
Concurrently, Bitwise has made a decisive pivot toward Hyperliquid (HYPE), purchasing an additional 77,097 HYPE tokens on June 16, 2026, valued at approximately $5.18 million through FalconX trading services. This acquisition brings Bitwise's total HYPE holdings to 428,490 tokens, currently worth $31.59 million, positioning HYPE as the firm's fourth-largest crypto holding behind Bitcoin, Solana, and Ethereum. This strategic reallocation underscores Bitwise's shift away from mature digital asset categories toward emerging decentralized platforms as institutional demand expands. The timing aligns with Bitwise and 21Shares' May 2026 launch of spot ETFs tracking HYPE indexes, indicating a coordinated institutional push into Hyperliquid exposure as alternative asset classes gain traction among sophisticated investors.
The withdrawal decision reflects mounting competitive pressures within the institutional crypto ETF market. Bitwise already maintains significant presence in the sector through its standalone Bitwise Bitcoin ETF (BITB), which commands $2.45 billion in net assets under management, and its Bitwise Ethereum ETF (ETHW), which holds $198.06 million in AUM. The combined Bitcoin & Ethereum vehicle appears to have become strategically redundant given this existing infrastructure. Recent market entrants, including Morgan Stanley's Bitcoin ETF (MSBT) launch, have further intensified competition and may have influenced Bitwise's decision to consolidate resources rather than pursue the combined product.
Concurrently, Bitwise has made a decisive pivot toward Hyperliquid (HYPE), purchasing an additional 77,097 HYPE tokens on June 16, 2026, valued at approximately $5.18 million through FalconX trading services. This acquisition brings Bitwise's total HYPE holdings to 428,490 tokens, currently worth $31.59 million, positioning HYPE as the firm's fourth-largest crypto holding behind Bitcoin, Solana, and Ethereum. This strategic reallocation underscores Bitwise's shift away from mature digital asset categories toward emerging decentralized platforms as institutional demand expands. The timing aligns with Bitwise and 21Shares' May 2026 launch of spot ETFs tracking HYPE indexes, indicating a coordinated institutional push into Hyperliquid exposure as alternative asset classes gain traction among sophisticated investors.
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