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Bitwise Files Bid for Spot Ethereum ETF

The San Francisco-based Bitwise Asset Management has entered the race for Ethereum spot exchange-traded fund. The US leading crypto index fund filed its bid with the US Securities and Exchange Commission (SEC), expressing its intentions to offer the spot ETH ETF

The crypto investment firm filed the application days after its chief investment executive declared that delayed approval of spot ETH ETF would benefit the market.

The entry by Hunter Horsley-led Bitwise adds a critical player to the crowded race of applicants that seek to bring the spot Ethereum ETF into the US investment pace months after the approval of spot Bitcoin ETFs. 

Bitwise Files Bid for Spot Ethereum ETF

Bitwise filed the S-1 registration form capturing its proposal for the Bitwise Ethereum Trust to hold Ethereum (ETH). The filing illustrates that it may stake the portion of the assets via trusted providers to generate additional rewards. 

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Staking involves a practice that recently attracted scrutiny from regulators. It involves locking Ether to secure the Ethereum network while validating transactions in return, earning minted Ether.

Bitwise Asset Management’s entry into the race of firms seeking spot Ethereum ETF approval coincides with the increased interest from traditional financial (TradFi) firms. Other applicants include BlackRock, VanEck, and crypto investment giant Grayscale Investment, which submitted bids to unveil spot Ethereum ETFs. 

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The crowd of applications portrays the potential demand the spot Ethereum ETF commands as investors seek exposure to the second-largest crypto by market cap without directly purchasing and storing the Ether. 

Bitwise filing comes days after chief investment executive Matt Hougan ruled out the approval of the spot Ethereum ETF this summer. He supported other market observers, predicting that waiting until 2023 could be beneficial.  

Hougan indicated that delaying the unveiling of spot Ethereum ETFs till December would facilitate gathering additional assets compared to the May launch. Also, the executive stated that TradFi needed extra time to digest the spot Bitcoin ETFs. 

The Gensler-led SEC has in a recent announcement, delayed its decision on several of the applications for spot Ethereum ETF, including Invesco, Galaxy Digital, Grayscale, Fidelity,y, and BlackRock. 

SEC to Delay Approval Decision on Spot Ethereum ETF

Lead Bloomberg ETF analyst James Seyffart had earlier predicted that the SEC would delay decisions till May 23. The deadline comprises the drop-dead deadline for the initial applications filed by Cathie Wood’s Ark Invest and VanEck. He considers that denied approval is likely.  

The delays in the decision from the SEC leave the experts optimistic regarding the prospects of the spot Ethereum ETFs. British multinational bank Standard Chartered weighed on the approval, which it predicts will be possible by May this year. 

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The UK bank indicated that the approval is likely because the SEC does not consider Ether security. Standard Chartered Bank predicts the Ether price could test $8,000 by December and later test $14,000 by 2025 race to approval. 

Crypto industry executives have predicted that approving spot Ethereum ETFs will significantly impact the crypto market. 

Spot Ethereum ETFs are projected to attract billion-dollar inflows into the funds to propel the crypto price. Ethereum is set to witness the rally as traditional investors gain access and invest in the crypto exchange-traded product.  

Editorial credit: T. Schneider / Shutterstock.com


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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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