Bitwise Moves Forward with Ethereum ETF Proposal Defying Regulatory Barriers

Bitwise Asset Management has just taken a significant step by requesting the creation of an Ethereum-based Exchange-Traded Fund (ETF). The company, which already has experience in managing a Bitcoin ETF, is now seeking to explore the potential of Ethereum, expanding its offer for investors interested in diversifying their portfolios with crypto assets. At the time of publication, the price of ETH was quoted at $3,542.16 in the last 24 hours.

Bitwise’s application for an Ethereum ETF includes a comparative study between Ethereum (ETH) and Bitcoin (BTC), with the aim of convincing the United States Securities and Exchange Commission (SEC) of the viability of its new product. This effort reflects the company’s desire to replicate the success of its Bitcoin ETF, bringing another regulated investment option to the market.

Furthermore, Bitwise already has in its portfolio the Bitwise Ethereum Strategy ETF (AETH), a fund that invests in Ethereum futures. This initiative puts Bitwise in direct competition with other large financial institutions, such as Fidelity, which are also in the race to launch similar products in the cryptocurrency market.

A distinguishing feature of Bitwise’s proposal is the lack of mention of Ethereum staking, a feature that has been highlighted by other companies in the same space. This detail could differentiate Bitwise’s offering in a market increasingly saturated with ETF options based on crypto assets.

The documentation presented by Bitwise, although it does not reveal details such as the specific ticker or the fees associated with the proposed ETF, provides a detailed analysis of the correlation between the ETH spot and futures markets, following a methodology similar to that used by the SEC. This suggests a strong similarity between the market behavior of Ethereum and Bitcoin, strengthening the case for ETF approval.

However, despite the hope of a quick approval by the SEC, reality has shown a slower process than anticipated, especially in comparison to the speed observed in the approval of the Bitcoin ETF. The regulator has postponed its decisions on Ethereum ETFs until the end of May, prolonging the expectation of a verdict.

This delay in approval reflects the SEC’s caution in introducing cryptocurrencies into mainstream financial products, indicating both the challenges and potential of this integration.

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