Asset management firm Bitwise is making moves to list and trade shares of a spot Ether exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The firm recently amended its S-1 registration, including a six-month fee waiver for up to $500 million. The filing did not specify an exact launch date but mentioned it would occur “as soon as practicable after the effective date” of the registration. Bloomberg ETF analyst Eric Balchunas noted that Bitwise filed the amendment ahead of a July 8 deadline, speculating on potential reasons for the SEC’s delayed approval process.
The SEC Chair Gary Gensler has stated that the commission might finalize approvals for spot Ether ETFs as early as summer 2024, with some analysts anticipating a potential approval in July. Gensler mentioned during a Senate Banking Committee hearing that the registration process for Ethereum exchange-traded products was progressing smoothly, and approvals for individual issuers were expected in the coming months. However, in a June 5 interview on CNBC, Gensler hinted at a potential delay in the approval process, stating that the next steps would “take some time.”
Bitwise’s amended S-1 filing comes after the SEC approved spot Ether ETF 19b-4 filings from eight asset managers on May 23, sparking anticipation within the crypto investment community. The move by Bitwise to file the updated registration statement suggests a proactive approach to navigating the regulatory approval process. Balchunas speculated that the SEC’s delay could be attributed to a variety of reasons, including a problematic issuer or the summer slowdown.
The initial filing by Bitwise for shares of a spot Ether ETF was made in March amid rumors that the SEC was considering labeling ETH a security. However, court filings from June indicated that the SEC had dropped this consideration, paving the way for further developments in the approval process. The market is closely monitoring any updates from the SEC regarding the potential launch date of spot Ether ETFs, as investors are eager to capitalize on the growth potential of Ether and blockchain technology.
As the regulatory landscape continues to evolve, asset managers like Bitwise are navigating the complexities of gaining approval for spot Ether ETFs. The filing of the amended S-1 registration signals a step forward in the process, with the firm positioning itself to list and trade shares on NYSE Arca in the near future. With the SEC expected to finalize approvals for Ethereum exchange-traded products over the summer, investors are eagerly awaiting the green light for spot Ether ETFs to enter the market. Stay tuned for updates on this developing story as the approval process unfolds.
