ETFs
Bitwise CCO Talks About App Progress
On Tuesday, Bitwise Asset Management Chief Communications Officer (CCO) Katherine Dowling discussed the firm’s Ethereum spot ETF (exchange-traded fund) application and the possibility of new crypto-related products being approved by the U.S. Securities and Exchange Commission (SEC).
Ethereum ETFs Launching Soon
Katherine Dowling joined Bloomberg Crypto to discuss the progress of Bitwise’s Ethereum spot ETF application. According to the crypto fund’s CCO, applications are moving forward smoothly, with issuers seeing “fewer and fewer issues” in S-1 amendments.
Katherine Dowling joins Bloomberg Crypto. Source: Bloomberg Crypto on X
This suggests that “we are close to the finish line of the launch.” Dowling said, “It’s been a long, hot summer for issuers” waiting for Ethereum ETFs to launch, as applicants don’t yet have a date.
As Chairman Gensler said, this will happen over the summer. Everyone has their own definition of summer.
Earlier, SEC Chairman Gary Gensler said the investment products would be approved during the summer. The news sparked speculation about when the products would launch. In late June, Reuters reported that sources close to some applicants believed Ethereum ETFs could be approved by July 4.
Asked about retail and institutional demand for Ether-based investment products, the CCO explained that ETH ETFs are a “more nuanced sell” than Bitcoin spot ETFs.
However, Dowling believes that bitcoin has “its own market structure that is explainable.” While “not as easily explainable as bitcoin’s ‘digital gold’ qualities,” it is not “harder to sell” than the flagship cryptocurrency.
Bitcoin is the big leader. We are six months behind and close to the launch of ETH spot ETFs.
November Elections: The Decisive Moment for the Emergence of ETFs
Dowling also raised the possibility of other crypto-based ETFs being approved by the SEC. The CCO revealed that they have discussed the prospect of “what’s coming with new products” with the US regulator.
Apparently, discussions between issuers and the SEC have been productive and welcoming:
It’s an active dialogue, and I think our communication with the SEC on the outlook for these products has been pretty well received.
Despite the positive response from the US regulator, Dowling believes there is virtually no chance of another crypto-related spot ETF being approved after the Ethereum ETFs.
The CCO believes that these investment products may have to wait for further SEC Chairman; otherwise, “it will take time to bring some of these products to market, given the history.”
Bloomberg ETF analyst Eric Balchunas shared a similar view after news broke that a Solana spot ETF had been filed for approval. Last month, Balchunas said the chances of a Solana ETF being approved in the next 12 months were “closely tied” to the November U.S. presidential election.
ETF expert weighs in on Solana ETFs and the November elections. Source: Eric Balchunas on X
The ETF analyst reaffirmed his view this week when the Chicago Board Options Exchange (CBOE) deposit Form 19b-4 for VanEck and 21Shares. According to the publication, “the Solana ETFs will have a final deadline of mid-March 2025.”
However, Balchunas considered The decisive moment will be in November. “If Biden wins, these stocks are probably doomed. If Trump wins, anything is possible,” the ETF expert said.
Ethereum (ETH) is trading at $3,097 in the three-day chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com