Bitwise Joins Ethereum Spot ETF Race, Files Application with SEC

cryptonews.com:

Crypto investment firm Bitwise has submitted an application to the Securities and Exchange Commission (SEC) to launch a spot Ethereum exchange-traded fund (ETF). 

This move positions Bitwise as one of many contenders in the race to introduce the first Ethereum spot ETF, following the successful launch of Bitcoin spot ETFs earlier this year.

According to the  S-1 registration form  filed by Bitwise, the proposed “Bitwise Ethereum Trust” would hold Ethereum and potentially engage in staking activities through trusted providers to earn additional rewards. 

Staking involves locking up ETH to secure the Ethereum network and validate transactions, with participants receiving newly minted ETH as a reward. 

Bitwise is publishing a new correlation analysis today as part of its new spot Ethereum ETF filing.

This is the first ETH correlation analysis to replicate the specific methodology used by the SEC in their evaluation of bitcoin, and the results are encouraging.

The correlation… pic.twitter.com/dOLh0F50BE

— Bitwise (@BitwiseInvest) March 28, 2024

Bitwise’s introduction into the Ethereum spot ETF competition aligns with the growing interest from traditional financial firms to offer such products. 

In recent months, industry giants such as BlackRock, Grayscale, and VanEck have also filed proposals with the SEC to launch their own Ethereum spot ETFs. 

The increasing number of applicants highlights the demand for investment products that offer exposure to the second-largest cryptocurrency without requiring investors to directly purchase and store it themselves.

Bitwise’s filing comes shortly after one of its executives, Matt Hougan, Chief Investment Officer, expressed doubt about the approval of an Ethereum spot ETF during the