Crypto Fund Manager Bitwise Asset Management Assures No Ties with Defunct Bitwise Industries
Bitwise Asset Management, a crypto fund manager, has denied having any association with the now-defunct technology company, Bitwise Industries. This clarification comes amidst inquiries by the US Securities and Exchange Commission (SEC) into Bitwise Industries.
The SEC has accused Bitwise Industries and its former co-CEOs of deceiving investors about the company’s financial state. The regulatory body alleges that the tech company amassed $100 million from investors despite having a failing business model and falsified bank account figures.
The similarity in name between Bitwise Asset Management and the troubled tech firm has cast doubts on the cryptocurrency asset manager. There were social media posts that exchanged the logos of both companies, leading to speculation that Bitwise Asset Management was under SEC scrutiny.
Responding to these reports, Bitwise affirmed that it has no connections with the technology provider. The company stated, “San Francisco-based Bitwise Asset Management, Inc., the largest crypto index fund manager in America, has no relationship with, and has never had a relationship with, the now-defunct Bitwise Industries, a former technology company based in Fresno, California.”
In other developments, Bitwise recently made amendments to its application for a Bitcoin Exchange-Traded Fund (ETF) in a bid to address the concerns raised by the SEC. The move demonstrates Bitwise’s ongoing efforts to achieve the approval of a Bitcoin ETF.
Bitwise also withdrew its “Bitcoin and Ethereum Market Cap Strategy ETF” application in August, a surprising move given the company’s previous commitment to pursuing ETF approval. This decision occurred as Bitwise re-filed its application for a spot Bitcoin ETF in June, which subsequently prompted other prominent asset managers, including BlackRock, to submit their own ETF applications.
As the crypto world continues to evolve, the saga between Bitwise Asset Management and Bitwise Industries underscores the importance of regulatory compliance and the need for clear communication in the cryptocurrency space. This case serves as a reminder for companies operating in the industry to maintain transparency and differentiate themselves from any entities facing legal or financial challenges.