Bitwise, the asset management firm, has taken a significant step by amending its S-1 registration with the United States Securities and Exchange Commission (SEC) to allow the listing and trading of shares for a spot Ether exchange-traded fund (ETF). This move comes in light of SEC Chair Gary Gensler’s recent statement indicating that the commission could finalize approvals for spot Ether ETFs by summer 2024, with some industry analysts speculating that approval could come as early as July.
On July 3, Bitwise filed an updated Form S-1 registration statement with the SEC, offering a six-month fee waiver for up to $500 million. While the specific launch date for listing and trading on NYSE Arca was not specified in the filing, Bitwise indicated that it would occur “as soon as practicable after the effective date” of the registration. Bloomberg ETF analyst Eric Balchunas mentioned that Bitwise filed the amended S-1 ahead of a July 8 deadline, possibly to clear administrative tasks quickly.
Balchunas speculated on the potential reasons for the SEC’s delayed approval process, suggesting it could be attributed to difficulties with specific issuers or a general slowdown during the summer months. Despite the light comments received on the filing, which required minimal updates, the approval process has not progressed at the expected pace. This has left many wondering about the underlying issues causing the delay.
Bitwise’s decision to move forward with the spot Ether ETF registration amendment comes after the SEC approved 19b-4 filings for spot Ether ETFs from eight asset managers on May 23. Since then, the crypto investment community has eagerly awaited further updates from the SEC regarding the potential release date for these products. In a Senate Banking Committee hearing on June 13, SEC Chair Gary Gensler mentioned that the commission anticipated approving S-1 registration statements for asset managers “sometime over the course of this summer,” indicating a positive trajectory for spot Ether ETFs.
Bitwise originally filed its S-1 with the SEC for shares of a spot Ether ETF back in March, amid speculations that Ethereum (ETH) could be categorized as a security. However, court filings from June suggested that the SEC had abandoned this consideration, providing more clarity on the regulatory status of ETH. Despite the challenges and delays in the approval process, Bitwise remains optimistic about the future of spot Ether ETFs and is actively working towards their launch on NYSE Arca.
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