Bitwise Revises Bitcoin ETF Application, Sets Launch Date for Two Ethereum ETFs
Summary:
Bitwise Asset Management has updated its Bitcoin Exchange-Traded Fund (ETF) application and confirmed the launch of two Ethereum-based ETFs on October 2, 2023. This move opens up investor access to CME Ether futures within the secure, established ETF framework. The company has also noted that many firms seeking Bitcoin ETF approval are showing interest in the Ethereum ETF. However, the approval of a spot Bitcoin ETF in 2023 seems unlikely. The result of the pending Grayscale lawsuit may have a significant impact when the U.S. SEC takes its decision in 2024.
Bitwise Asset Management has updated its proposal for a spot Bitcoin Exchange-Traded Fund (ETF) and announced that trading of two Ethereum-based ETFs will get underway on the 2nd of October, 2023. This news arrives in the wake of modifications made to the company's spot Bitcoin ETF application. Two funds, namely the Bitwise Ethereum Strategy ETF ($AETH) and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF ($BTOP) are set to go live.
Bitwise's move aims to let investors tap into CME Ether futures by leveraging ETFs, a generally accepted and regulated mechanism. This marks a significant advancement in the cryptocurrency world. Matt Hougan, the company's Head of Investments, added that Ethereum presents a larger scope for portfolio diversification than Bitcoin and is viewed differently by various investors. Some consider Ethereum as an alternate investment while others view it as a standard growth vehicle, signifying both elements.
Other entities vying for a spot Bitcoin ETF approval have also joined the fray for an Ethereum ETF. Recently, Invesco, an investment management company, showed interest in launching the Invesco Galaxy Ethereum ETF. Bitwise, alongside BlackRock and Invesco, had experienced a delay in obtaining the U.S. SEC's decision on their Bitcoin ETF applications. Consequently, the prospects of a spot Bitcoin ETF receiving green light in 2023 seems very slim.
However, the culmination of the Grayscale lawsuit, which champions transforming Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF, could potentially sway the situation once the U.S. SEC reaches its verdict, anticipated in 2024. In a pleasing turn of events for the sector, a U.S. Court cleared the way for the approval of the Grayscale spot Bitcoin ETF, overruling the SEC's reservations on August 29, 2023.
Meanwhile, James Seyffart, a Bloomberg analyst, revealed the complete line-up of 9 Ethereum Futures ETFs that are positioned to gain fast-tracked approval from the SEC, with the aim of launching on October 2, 2023.
Published At
9/30/2023 10:37:16 AM
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