Crypto investment firm Bitwise has applied to the SEC to launch a spot Ethereum ETF, joining the race alongside other major firms such as BlackRock, Grayscale, and VanEck. The proposed Bitwise Ethereum Trust would hold Ethereum and potentially engage in staking activities to earn additional rewards. Staking involves locking up ETH to secure the Ethereum network. Bitwise’s move comes after its Chief Investment Officer expressed doubts about the approval of an Ethereum spot ETF during the summer, suggesting a later launch date in December might be more advantageous for traditional finance.
The SEC has delayed decisions on several high-profile Ethereum spot ETF applications, leading some experts to believe that the applications will be denied. The delays have raised concerns about the SEC’s engagement with issuers on Ethereum specifics. Despite this, the British bank Standard Chartered remains optimistic that the SEC will approve Ethereum spot ETFs by May. The bank also predicts that the price of ETH could reach $8,000 by the end of this year and $14,000 by the end of 2025, partially driven by the expected approval of spot ETFs. The Ethereum network has also seen significant growth, surpassing one million validators and staking approximately 32 million Ether, representing around 26% of the total supply.
Bitwise’s introduction into the Ethereum spot ETF competition comes as traditional financial firms show increased interest in offering such products. Industry giants like BlackRock, Grayscale, and VanEck have also filed proposals with the SEC to launch their own Ethereum spot ETFs. The growing number of applicants reflects the demand for investment products that provide exposure to Ethereum without investors having to directly purchase and store the cryptocurrency. Bitwise’s filing coincides with the delay in decisions on other high-profile Ethereum spot ETF applications, leading some to revise their earlier optimistic predictions.
Despite the SEC delays, some experts believe that the approval of Ethereum spot ETFs is imminent. Standard Chartered predicts SEC approval by May, citing the lack of designation of ether as a security by the regulator. The bank also forecasts a significant increase in the price of ETH in the coming years, driven in part by the approval of spot ETFs. As Bitwise and other firms vie for the first Ethereum spot ETF, the market continues to watch for developments in the regulatory landscape and the potential impact on the cryptocurrency market as a whole. With the Ethereum network experiencing growth in validators and staked ETH, the interest in Ethereum as an investment opportunity continues to rise.
