Bitwise Mulls Ethereum ETP Launch, Raises Concerns on Spot Ether ETF Timeline
Summary:
Bitwise, a cryptocurrency asset management firm, is contemplating the launch of an exchange-traded product (ETP) focused on Ethereum's layer 2 networks and applications. The company's Chief Investment Officer, Matt Hougan, has also expressed concern that the market may not be ready for a spot Ethereum exchange-traded fund (ETF) by May. Bitwise, amongst others, has filed applications with the SEC for approval to list a spot Ether ETF.
Bitwise, a firm specializing in cryptocurrency asset management, is considering introducing an exchange-traded product (ETP) that targets Ethereum's layer 2 networks and applications. The company's chief investment officer, Matt Hougan, expressed both regret and enthusiasm over the lack of such a product within Bitwise's offerings during a recent interview with Forbes. He voiced his utmost faith in the growth of the Ethereum ecosystem, but acknowledged uncertainty over which of its layer 2s and applications will become predominant. He suggested the ideal strategy might be to invest in all of them, creating a diverse and comprehensive product. Hougan emphasized that the market has yet to grasp the significance of the upcoming Dencun upgrade.
As far as Ether ETFs are concerned, Hougan expressed scepticism about their potential approval in May, expressing hopes that the US securities regulator might defer approval until December. He cited reluctance among financial advisers to consider Ethereum, as traditional finance is still acclimating to newly sanctioned spot Bitcoin ETFs.
Meanwhile, Bitwise, along with several other applicants including BlackRock, VanEck, ARK 21Shares, Fidelity, and others, has submitted necessary paperwork to the SEC for approval to list a spot Ether ETF.
However, certain financial analysts have expressed doubts about these approvals being granted, pointing to the SEC's recent reticence in interacting with applicants. Last week, however, Grayscale's chief legal officer, Craig Salm, argued that concerns regarding spot Ether ETFs had been addressed in the approval process of spot Bitcoin ETFs.
Bitwise holds the honour of being one of eleven spot Bitcoin ETF issuers. Its Bitwise Bitcoin ETF, fondly known as BITB, has garnered over $1.6 billion in flows, ranking fourth after BlackRock’s IBIT, Fidelity’s FBTC, and Ark 21Shares’ ARKB, as reported by BitMEX Research.
Published At
4/1/2024 8:27:49 AM
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