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Bitwise files spot Ethereum ETF app

Bitwise filed its Ethereum spot ETF application with the SEC on March 28.

The company submitted a Form S-1 for a fund titled Bitwise Ethereum ETF. Like other similar apps, the fund aims to provide exposure to the value of ETH held in its trust.

The submission includes several key details, including that Bitwise aims to list on the NYSE Arca exchange and plans to use Coinbase Custody as its custodian. However, he did not disclose information about the ticker and fees.

Bitwise’s application addresses Ethereum staking as a broad aspect of Ethereum itself. However, the app does not discuss the possibility of the fund staking on ETH and generating returns, unlike competing apps from Ark 21Shares and Fidelity.

Strong futures/spot correlation

NYSE Arca also submitted a related 19b-4 filing on March 28, proposing a rule change to allow it to list Bitwise’s spot Ethereum ETF.

Bitwise contributed an analysis of the filing, which found a “strong correlation” between the ETH spot market and the CME ETH futures market.

The analysis aims to make the same argument as spot Bitcoin ETFs to meet certain SEC requirements related to monitoring potential market manipulation.

Establishing a correlation between Bitcoin futures markets and spot markets was crucial in gaining approval for the first spot Bitcoin ETFs in January.

The chances of approval are low.

Despite Bitwise’s latest submission, expectations for pending Ethereum spot ETFs are low.

Bloomberg analyst Eric Balchunas said on March 11 that Ethereum spot ETFs had a 35% chance of being approved by May 23, based primarily on a lack of signs from the SEC that led to the earlier one-off approvals of Bitcoin ETFs. Polymarket has a 20% chance of getting approval for an ETH ETF by the end of May.

The SEC must approve or reject a one-time Ethereum ETF application from VanEck by May 23. However, the SEC will likely decide all similar requests simultaneously.

At least seven asset managers, besides Bitwise, have pending applications.

The post Bitwise Files Spot Ethereum ETF App appeared first on CryptoSlate.

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