Bitwise CIO Hopes SEC Will Delay Spot Ethereum ETFs Until December

Bitwise’s Chief Investment Officer (CIO), Matt Hougan, strategically desires a December approval for Ethereum exchange-traded funds (ETFs) instead of a hasty launch in May. The investment firm recently filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a Spot Ether ETF, positioning itself as a potential competitor in the race to bring this product to market. The proposed “Bitwise Ethereum Trust” would directly own Ethereum and might leverage staking services offered by reputable custodians to generate further returns.

Bitwise Bank aims to replicate the success of recent Spot Bitcoin ETFs by introducing a Spot Ether ETF. However, Hougan acknowledges the challenge of piquing financial advisors’ interest in Ethereum currently. Despite Ethereum’s recent Dencun upgrade, it remains overshadowed by Bitcoin in professional investors’ eyes.

Sequential Adoption Pattern

Hougan expects a sequential adoption pattern within the crypto investor base, with Bitcoin serving as the initial entry point followed by a desire for diversification. While the market consensus anticipates an Ether ETF approval in May, Hougan believes that a December launch would be strategically more advantageous. He argues that traditional finance (TradFi) is still digesting Bitcoin, and giving it more time to get comfortable with crypto will better prepare it for the next big thing.

Bitwise’s strategic approach aims to position itself as a key player in the evolving crypto ETF landscape. By delaying the launch until December, they hope to capitalize on TradFi’s growing familiarity with digital assets, ultimately benefiting both investors and the market.