Bitwise Asset Management, a prominent provider of cryptocurrency index funds, has made a bold move by urging the U.S. Securities and Exchange Commission (SEC) to postpone approval for a spot Ethereum Exchange-Traded Fund (ETF) until December. The company’s Chief Investment Officer, Matt Hougan, explained in an interview with Forbes that the industry’s current obsession with Bitcoin-related products could potentially overshadow the necessary attention that is required for the development and approval of an Ethereum ETF.
Hougan pointed out the remarkable success of the Bitwise Bitcoin ETF (BITB), which was launched on January 11 and has already accumulated over $2 billion in assets under management, making it the fifth largest ETF in the market. He noted that spot Bitcoin ETFs are experiencing unprecedented growth and are quickly becoming the fastest-growing ETFs in history. This surge in interest is coming from a wide range of investors, including retail investors, financial advisors, hedge funds, venture capital funds, family offices, and corporate entities.
Despite the overwhelming success of Bitcoin ETFs, Bitwise believes that Ethereum deserves equal attention in the market. Hougan expressed confidence in the growth potential of the Ethereum ecosystem, especially with recent upgrades like the Dencun upgrade, which he believes will spur the development of innovative applications. He stressed the need for investors to look beyond Bitcoin and acknowledge the significance of Ethereum in the crypto space.
Bitwise’s decision to delay the approval of a spot Ethereum ETF until December is strategic. By giving traditional finance more time to get accustomed to spot Bitcoin ETFs, it may pave the way for a smoother transition into Ethereum offerings. The application for the spot Ethereum ETF was submitted to the SEC on March 28, 2024, indicating Bitwise’s long-term commitment to diversifying investment options in the crypto market.
In addition to advocating for an Ethereum ETF, Hougan also shared his views on other aspects of the crypto space. He discussed the potential of non-fungible tokens (NFTs) as a late-stage derivative of crypto wealth and highlighted the growing maturity of NFT projects. He also provided insights on equity products such as BITQ and BWEB, offering comparisons between them and shedding light on their involvement in the mining sector. Moreover, he touched upon MicroStrategy’s role as a leveraged player in the Bitcoin market and identified promising projects like Render and Immutable that are often overlooked.
Hougan emphasized that the crypto market is still in its early stages of adoption, with significant untapped opportunities, especially among institutional investors. By delaying the approval of a spot Ethereum ETF, Bitwise believes it can create a more conducive environment for the recognition and acceptance of Ethereum as a valuable investment option in the evolving world of cryptocurrency.
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