Bitwise Asset Management has withdrawn the application for its Bitcoin futures exchange-traded fund (ETF) citing what it said are the cost and complexity of such ETFs. The company will instead focus its efforts on its spot bitcoin ETF filing already in the pipeline.

• “Our analysis suggested contango (associated with a futures ETF) would cost investors 5%-10% per year, before compounding,” said Matt Hougan, Bitwise Asset Management chief investment officer, in a tweet thread explaining the company’s rationale for the withdrawal.

• “Ultimately, what many investors want is a spot bitcoin ETF [that holds bitcoin itself rather than futures]. We think that’s possible,” Hougan said.

• The CIO added that, “Bitwise will continue to pursue that goal, and we will look for other ways to help investors get access to the incredible opportunities in crypto.”

• The first bitcoin futures ETF, the ProShares Bitcoin Strategy ETF (BITO), was approved by the U.S. Securities and Exchange Commission (SEC) in October and is listed on the New York Stock Exchange.

Read more: Bitwise Joins Hunt for Bitcoin ETF Approval With Futures Product Filing