Bitwise Predicts SEC Could Postpone Ethereum ETF Approval Until December

Bitwise’s Chief Investment Officer, Matt Hougan, has suggested that the Securities and Exchange Commission (SEC) might be contemplating a postponement in the approval of eagerly awaited Ethereum exchange-traded funds (ETFs).

Following this development, Bitwise Asset Management has expressed its intention to list a spot Ethereum ETF.

Possible Delay in Approval of Ethereum ETF

Bitwise launched its spot Bitcoin ETF, the Bitwise Bitcoin ETF (BITB), on January 11. Since then, the ETF has seen a meteoric rise, amassing over $2 billion in assets and ranking fifth in the so-called “Cointucky Derby.”

Hougan shared insights into the explosive growth of BITB and other spot ETFs, underscoring their unprecedented acceleration compared to historical ETF launches.

“These [spot Bitcoin ETFs] are the fastest growing ETFs of all time by a large fraction. I believe the fastest growing ETF prior to these was the Nasdaq 100 ETF (QQQM), which went from zero to $5 billion in one year. These ETFs have pulled in net $10-plus billion in under two months,” Hougan emphasized.

Despite the success observed with spot Bitcoin ETFs, Hougan has raised concerns regarding the potential delay in the approval of Ethereum ETFs. This cautious approach from regulators could be attributed to the increasing interest in cryptocurrency investments and the intricate nature of the market dynamics.

While Hougan remains optimistic about the eventual launch of an Ethereum ETF, he suggests that a delay until later in the year might actually be beneficial for the market. Such a delay would provide traditional finance (TradFi) with more time to comprehend and adopt cryptocurrencies, potentially leading to a smoother integration of crypto assets into mainstream financial systems.

“We think that’s a natural pathway that crypto investors have followed for 15 years. They start with Bitcoin and then they want exposure to other things. I think Ethereum will be very attractive. I think the [Ethereum] ETFs will be more successful if they launch in 12 months than if they launch in May. I know that sounds goofy, but I think TradFi is still digesting Bitcoin and if you give TradFi time to get comfortable with Bitcoin and crypto, they will be ready for the next thing,” Hougan explained.

Source: CryptoQuant

Strategically exercising patience could potentially set the stage for a more informed and substantial influx of institutional and retail investors into Ethereum, building upon the remarkable success witnessed with Bitcoin ETFs.

Hougan’s observations underscore a notable transformation in the perception of cryptocurrencies, transitioning from skepticism to a recognized avenue for significant investment returns. With the SEC deliberating its decision, the cryptocurrency community awaits eagerly, hopeful for an approval that could not only enhance legitimacy but also accelerate investments in Ethereum and other digital assets.

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