SEC Considers Delaying Approval of Ethereum ETF Until December: Bitwise
The Securities and Exchange Commission (SEC) may postpone the approval of highly anticipated Ethereum exchange-traded funds (ETFs) until December, according to Matt Hougan, the Chief Investment Officer of Bitwise. This possible delay comes after Bitwise Asset Management revealed its plans to list a spot Ethereum ETF.
The Bitwise Bitcoin ETF (BITB), launched on January 11, has experienced significant growth, amassing over $2 billion in assets and ranking fifth in the “Cointucky Derby.” Hougan highlighted the rapid expansion of BITB and other spot ETFs, noting that they have outperformed historical ETF launches.
Hougan, however, warned about the potential delay in approving the Ethereum ETF, which might be a result of regulatory caution due to the increasing interest in cryptocurrency investments and the complex nature of the market. Despite this, he expressed confidence in the eventual launch of an Ethereum ETF. Hougan speculated that a delay until later in the year could actually benefit the market by providing more time for traditional finance (TradFi) to understand and embrace cryptocurrencies.
According to Hougan, crypto investors typically begin with Bitcoin and then seek exposure to other cryptocurrencies such as Ethereum. He believes that launching Ethereum ETFs in 12 months, rather than in May, would be more successful as it would give TradFi sufficient time to become comfortable with Bitcoin and crypto, thus being ready for the next investment opportunity.
This strategic patience could lead to the entry of institutional and retail investors in Ethereum, following the success of Bitcoin ETFs. It also signifies a shift in the perception of cryptocurrencies, from skepticism to acknowledging their potential for significant returns on investment.
As the SEC weighs its decision on Ethereum ETFs, the cryptocurrency community eagerly awaits a green light that could further legitimize and catalyze investments in Ethereum and other cryptocurrencies.