Bitwise files spot Ethereum ETF application

Bitwise filed an application for a Spot Ethereum ETF with the SEC on March 28th.

The company submitted S-1 form For a fund titled Bitwise Ethereum ETF. Like other similar applications, this fund aims to provide exposure to the value of ETH held within a trust.

The filing contains several important details, most notably that Bitwise aims to list on the NYSE Arca exchange and plans to use Coinbase Custody as its custodian. However, it did not disclose information about the ticker or fees.

Bitwise’s application describes Ethereum staking as a broader aspect of Ethereum itself. However, the filing does not mention the possibility of the fund staking his ETH and earn a return, unlike competing filings from Ark 21Shares and Fidelity.

Strong futures/spot correlation

NYSE Arca also filed a related 19b-4 filing on March 28, proposing rule changes that would allow Bitwise’s Spot Ethereum ETF to be listed.

bit by bit contributed Analysis of the filing found a “strong correlation” between the ETH spot market and the CME ETH futures market.

This analysis aims to establish the same argument for spot Bitcoin ETFs to meet certain SEC requirements related to monitoring potential market manipulation.

Establishing a correlation between Bitcoin futures and the spot market was critical to getting the first spot Bitcoin ETF approved in January.

The chances of being approved are low.

Despite Bitwise’s latest filing, expectations regarding the pending Spot Ethereum ETF are low.

Bloomberg analyst Eric Balchunas said on March 11 that there is a 35% chance that the Spot Ethereum ETF will be approved by May 23. This is primarily based on the lack of indications from the SEC leading to previous Spot Bitcoin ETF approval. Polymarket has a 20% chance of receiving approval for the ETH ETF by the end of May.

The SEC has until May 23 to approve or deny VanEck’s spot Ethereum ETF application. However, the SEC may decide similar applications all at the same time.

At least seven asset management companies other than Bitwise have pending applications.

The post Bitwise File Spot Ethereum ETF Application appeared first on CryptoSlate.

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