Bitwise Asset Management Files for Spot Ethereum ETF
Bitwise Asset Management, also known as Bitwise Investments, has submitted an application to the SEC for the listing and trading of shares of a spot Ethereum ETF.
Bitwise’s Move for an Ethereum ETF
The filing with the SEC for the spot Ethereum ETF came on March 28 in the form of a Form S-1 registration statement. This move by Bitwise coincided with rumors that the SEC was considering categorizing Ether as a security, potentially complicating future spot ETF listings.
- Bitwise aims to list shares of the ETH investment vehicle on NYSE Arca.
- The asset manager was the first to gain approval for a spot Bitcoin ETF earlier this year, holding over 30,800 bitcoins.
Upcoming Decision on Ethereum ETFs
The SEC has until May 23 to approve or deny the latest round of spot ETH ETF applications, starting with VanEck’s submission. While optimism was high for approval in 2023, some experts now speculate that the applications could face rejection in 2024.
- Several firms, including Fidelity, Hashdex, and ARK 21Shares, have pending spot ETH ETF applications with the SEC.
- The commission began approving investment vehicles linked to Ethereum futures in October 2023.
Industry Insights on Ethereum ETF Approval
The Chief Legal Officer of Grayscale Investments, Craig Salm, highlighted positive interactions with the SEC ahead of Bitcoin ETF approvals. He noted similarities in the approval process for ETH ETFs, suggesting less need for extensive engagement this time.
- Salm emphasized the alignment of opinions within the industry, supporting the approval of Ethereum ETFs based on factors like ETH futures classification and market correlations.
Varied Perspectives on Ethereum ETF Approval
Bloomberg’s Senior ETF Analyst, Eric Balchunas, offered a contrasting view, expressing skepticism about the SEC’s likelihood of approving spot Ethereum ETFs by May 2024. He cited the lack of positive indicators and intelligence as reasons for his pessimistic outlook on approval.
- Balchunas estimated a low probability of 25% for the approval of Ethereum ETFs by the SEC.
Current Market Update
As of now, ETH is trading at approximately $3,540, experiencing a 0.9% decline in the last 24 hours.
Hot Take: Are Ethereum ETFs About to Receive Approval?
With conflicting opinions and uncertainty surrounding the approval of spot Ethereum ETFs, the crypto community awaits a final decision from the SEC. Stay tuned for updates on the future of Ethereum ETFs in the market.
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