Cryptocurrency investment company Bitwise today applied to the Securities and Exchange Commission (SEC) to offer a Spot Ethereum ETF. Bitwise joins an increasingly crowded field of companies vying to bring the first Ethereum Spot ETF to market, following the successful launch of the Bitcoin Spot ETF earlier this year.
According to the S-1 registration form filed by Bitwise, the proposed “Bitwise Ethereum Trust” will hold Ethereum (ETF) and invest a portion of the fund’s assets through a trusted staking provider to earn additional rewards. It is said that there is a possibility of staking the portion. Staking, which is under intense scrutiny by government regulators, involves locking up ether to secure the Ethereum network and verify transactions, with participants earning newly minted ether as rewards. Masu.
Bitwise’s entry into the Ethereum spot ETF race comes amid growing interest from traditional financial companies. In recent months, asset management giant BlackRock, digital currency investment firm Grayscale, and VanEck have each filed proposals with the SEC to launch their own Ethereum Spot ETFs. The increased competition reflects pent-up demand for such products, as investors seek exposure to the second-largest cryptocurrency without having to buy and store it directly themselves.
The filing comes shortly after Bitwise executives predicted that approval for the Ethereum Spot ETF would not happen this summer, as many expected, and said it might be better to wait until later this year. It was conducted.
Matt Hogan, chief investment officer at Bitwise, said in a recent tweet that “Spot Ethereum ETF will attract more assets if it launches in December than if it launches in May.” said. “TradFi needs more time to digest Bitcoin ETF.”
The SEC has delayed decisions on several high-profile Ethereum spot ETF applications in recent months, including BlackRock, Grayscale, Fidelity, Invesco, and Galaxy Digital.Analysts like James Seifert of Bloomberg was originally predicted The delay will last until May 23, the deadline for the earliest filing from Van Eck and Cathie Wood's Ark Investments. He now thinks they will be rejected.
Despite the delay, some experts remain optimistic about the prospects for the Ethereum Spot ETF.
British multinational bank Standard Chartered expects the SEC to approve such products by May, citing the regulator's failure to designate ether as a security. The bank also predicts that the price of Ether could reach $8,000 by the end of the year and $14,000 by the end of 2025, in part due to the expected approval of spot ETFs.
The potential impact of the Ethereum Spot ETF on the crypto market could be significant. Since Bitcoin Spot ETFs were approved in January, billions of dollars have flowed into these funds, pushing up the price of the major cryptocurrency. A similar effect could be seen with Ethereum as traditional investors gain a more accessible means to invest in assets.
