Ethereum ETFs Countdown – Bitwise and SEC Hint at Imminent Launch

Bitwise’s chief compliance officer Katherine Dowling says “fewer and fewer” issues in the S-1 filings are being discussed between the SEC and prospective ETF issuers.

According to Katherine Dowling, Bitwise’s chief compliance officer, several United States-based spot Ether exchange-traded funds (ETFs) are nearing their launch, yet the exact date remains uncertain. 

“We’re seeing in the S-1 amendments that there are fewer and fewer issues that are being vetted back and forth between issuers and the SEC,” Dowling shared with Bloomberg on July 9. “So that points all signs in the direction that we are close. We’re close to the finish line on the launch.”

S-1 forms provide critical information about the issuer and the securities they plan to offer. Upon approval, these products can be launched.

Anticipated Summer Launch for Ethereum ETFs

US Securities and Exchange Commission Chair Gary Gensler recently suggested that spot Ether ETFs might launch sometime in the summer.

“Everyone has a different definition of summer. It’s been a little bit of a long, hot summer for the issuers waiting,” Dowling commented.

Bitwise Chief Compliance Officer Katherine Dowling discusses her firm’s Ether ETF application and the potential for new crypto-related products.

Several spot Ether ETF issuers have been awaiting SEC approval for their S-1 registration statements for six weeks, following the regulator’s approval of several 19b-4 filings on May 23. The issuers submitted their amended S-1s in early July after receiving initial feedback from the securities regulator.

Bitwise’s chief investment officer, Matt Hougan, speculated that spot Ether ETFs could attract up to $15 billion in inflows within the first 18 months of trading, comparable to the inflows that spot Bitcoin ETFs have seen since their launch six months ago.

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SEC Open to Broader Crypto Product Discussions

Dowling revealed that the SEC is also open to discussions about products beyond Bitcoin (BTC) and Ethereum (ETH).

“We’ve actually dialogued with the SEC about the possibility of what’s coming down the pipe with new products,” Dowling noted.

“I think our communication with the SEC about the prospects for these products has actually been quite welcoming.”

According to news sources, on July 8, the Chicago Board Options Exchange (CBOE) filed applications to list spot Solana ETFs on behalf of VanEck and 21Shares.

Competition Among Ether ETF Issuers

In a related development, Invesco has set fees for its Ether ETF at 0.25% as competition among issuers intensifies.

Despite this, Dowling is sceptical about a third-spot cryptocurrency ETF being approved under Gensler’s leadership. Senior Bloomberg ETF analyst Eric Blachunas echoed this sentiment on July 9, suggesting that a spot Solana ETF application would likely be “dead on arrival” if Biden were to be re-elected and Gensler remained as the head of the financial regulator.

The Path Forward for Ethereum ETFs and Crypto Products

While the exact launch date for Ethereum ETFs remains unknown, the progress in S-1 filings and the SEC’s willingness to engage in discussions about new crypto products are positive signs for the industry. Bitwise’s anticipation of substantial inflows highlights the potential market impact of these products. The ongoing dialogue with the SEC also indicates a broader acceptance and potential future expansion of crypto products beyond Bitcoin and Ethereum, including the likes of Solana ETFs.

In conclusion, as the summer progresses, the crypto industry continues to watch closely for updates on the launch of Ethereum ETFs and other crypto-related products through credible sources like The BIT Journal.