Bitwise Proposes Ethereum ETF Amid Regulatory Hurdles

Bitwise has officially applied for an Ethereum ETF, following their success with a Bitcoin ETF earlier.

The application includes a correlation analysis between ETH and BTC, aiming to demonstrate to the SEC that an Ethereum ETF deserves approval based on similarities in market dynamics.

Already known for launching the first spot bitcoin ETF, Bitwise is expanding into Ethereum with not only this new ETF application but also by offering an Ethereum futures ETF, known as Bitwise Ethereum Strategy ETF (AETH).

This move places Bitwise alongside other major firms like Fidelity, which has also recently submitted its ETF proposal.

Unlike some competitors, Bitwise's ETF proposal does not mention staking, a feature present in filings from other firms like Ark 21Shares and Fidelity. This decision sets Bitwise's application apart in the crowded ETF landscape.

The proposed Ethereum ETF by Bitwise, intended for NYSE listing, lacks details such as the ticker and fees in the public filings.

However, the 19b-4 document provides a detailed correlation analysis, reflecting the SEC's own methods. According to Bitwise, this analysis shows a strong market correlation between ETH spot and futures, similar to what was observed with Bitcoin.

Despite initial optimism for a quick approval, expectations have cooled as the SEC's engagement with issuers remains low.

This slow pace contrasts with the quick follow-up seen after the Bitcoin ETF's approval. Still, industry experts believe that the timing of the ETF's launch could affect its success, suggesting a later launch might benefit from the market's increased readiness.

The SEC has postponed decisions on Ethereum ETFs until late May.

This delay continues the pattern of cautious consideration by the regulatory body, reflecting the broader challenges and anticipation surrounding the introduction of cryptocurrency into mainstream financial products