Bitwise Files for Ethereum Spot ETF Following Success of Bitcoin ETF
Bitwise Asset Management, known for its January launch of the Bitcoin Spot ETF, is now expanding its reach to Ethereum with the filing of an ETF Ethereum Spot application.
Correlation Analysis and Methodology
In its submission, Bitwise includes an analysis of the correlation between the ETH spot market and the ETH futures market on the CME, similar to the analysis conducted by the Securities and Exchange Commission for Bitcoin Spot ETFs. This approach aims to demonstrate a strong correlation between these two markets, bolstering the argument for the approval of an Ethereum Spot ETF by regulators.
Matt Hougan, Chief Investment Officer at Bitwise, suggested at the Digital Assets Summit that Ethereum Spot ETFs could attract more assets if launched in December rather than May, allowing more time for the traditional finance world to adapt to Bitcoin ETFs.
Strategy and Specifics of Bitwise’s Application
Unlike some competitors, Bitwise’s application does not explicitly mention ETH staking, a feature present in the previous filings of other players such as Ark 21Shares, BlackRock, and Fidelity.
While planning to list this ETF on NYSE, just like its Bitcoin counterpart, Bitwise has not disclosed a ticker or associated fees for this product.
Despite initial hopes for approval in May for the proposed Ethereum Spot ETFs, Bloomberg analysts Eric Balchunas and James Seyffart have observed a lack of SEC engagement with potential issuers, unlike what occurred a few months after the approval of Bitcoin Spot ETFs.
Craig Salm from Grayscale emphasizes that this lack of engagement should not be interpreted as an indicator of an unfavorable outcome.
