Bitwise, an asset management firm, recently made amendments to its S-1 registration with the United States Securities and Exchange Commission (SEC) to allow for the listing and trading of shares of a spot Ether exchange-traded fund (ETF). This move comes in light of SEC Chair Gary Gensler’s statement indicating that approvals for spot Ether ETFs may be finalized by summer 2024, with some speculating it could happen as early as July.
Bitwise filed an updated Form S-1 registration statement with the SEC on July 3, which includes a six-month fee waiver for up to $500 million. Although the specific launch date for listing and trading on NYSE Arca was not provided in the filing, it was mentioned that this would occur “as soon as practicable after the effective date” of the registration.
Speculation on Delayed Approvals
Bloomberg ETF analyst Eric Balchunas highlighted that Bitwise’s amended S-1 filing was done prior to a July 8 deadline. He speculated on possible reasons for the SEC’s delayed approval process, suggesting it could be due to issues with an issuer or simply a slowdown due to the summer season. Balchunas expressed uncertainty regarding the reasons behind the delays, indicating that the comments received by the SEC were light and approvals could have happened sooner.
SEC’s Previous Approvals and Expectations
The SEC previously approved spot Ether ETF 19b-4 filings from eight asset managers on May 23, sparking anticipation within the crypto investment community for further developments. During a June 13 Senate Banking Committee hearing, SEC Chair Gary Gensler mentioned that the commission anticipated approving S-1 registration statements for asset managers “sometime over the course of this summer.” He reassured that the registration process for Ethereum exchange-traded products was progressing smoothly, with approvals for individual issuers expected in the near future.
Bitwise’s initial filing for shares of a spot Ether ETF with the SEC in March came amidst rumors of the regulator considering labeling ETH as a security. However, court filings from June suggested that the SEC had abandoned this consideration. The delayed approval process for spot Ether ETFs may have implications on the market, affecting investor sentiment and opportunities for exposure to Ether through regulated financial products.
The ongoing delays in approving spot Ether ETFs by the SEC have created uncertainty within the crypto investment community. The market eagerly awaits further developments and clarity on the potential release date, with the SEC expected to provide more updates in the coming months. Investors and asset managers are closely monitoring the situation to assess the impact on trading opportunities and market dynamics related to Ether.
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