TL;DR
- Bitwise Asset Management, the latest applicant for an Ethereum Exchange Traded Fund (ETF), has requested the U.S. Securities and Exchange Commission (SEC) to delay approvals until December. This is due to the asset management industry’s focus on Bitcoin products, neglecting the necessary attention required for Ether ETFs.
- Despite high hopes, the SEC’s lack of communication about an Ethereum ETF has dampened expectations for approval by May. The SEC’s classification of Ethereum as a security rather than a commodity (like Bitcoin) could affect their decision-making.
- Matt Hougan, the Chief Investment Officer of Bitwise, aims to provide more time for careful evaluation and analysis with his request to postpone approval decisions for Ethereum ETFs until December. This move recognizes the changing landscape of the cryptocurrency market.
Bitwise Asset Management, the latest applicant for an Ethereum ETF (Exchange Traded Fund), has requested the U.S. Securities and Exchange Commission (SEC) to delay approvals until December. Matt Hougan, the Chief Investment Officer of Bitwise, argues that the asset management industry is overly concentrated on Bitcoin products, thereby neglecting the necessary attention required for Ether ETFs to flourish.
On January 11, Bitwise, a provider of cryptocurrency index funds, debuted its spot Bitcoin ETF, called Bitwise Bitcoin ETF (BITB). With over $2 billion in assets under management, the ETF is currently ranked fifth in the “Cointucky Derby.” Subsequently, on March 28, Bitwise filed the necessary paperwork with the SEC to list a spot Ethereum ETF.
Hougan expressed his satisfaction with BITB’s rapid start and the overall growth of spot Bitcoin ETFs, which he described as the fastest-growing ETFs of all time. Despite Bitwise being a relatively small asset manager compared to giants like BlackRock, it has managed to attract billions of dollars in investments.
Challenges and Expectations for Ethereum ETF Approval
Despite high hopes, the SEC’s lack of communication about an Ethereum ETF has dampened expectations for approval by May. The absence of customary pre-approval actions, such as filing amendments or engaging with issuers, has worried industry observers. The SEC’s classification of Ethereum as a security rather than a commodity (like Bitcoin) could affect their decision-making.
The SEC has previously delayed decisions on several Ether ETFs, and the new deadline for a decision on Invesco Galaxy’s Ethereum ETF is now set for February 6, 2024. This delay allows the Commission more time to review the proposal.
Hougan’s request to postpone approval decisions for Ethereum exchange-traded funds (ETFs) until December aims to provide more time for careful evaluation and analysis. This move recognizes the changing landscape of the cryptocurrency market, and the SEC’s decisions will heavily influence the trajectory of Ethereum and other digital assets in the future.
