<img src="https://cryptoslate.com/wp-content/uploads/2023/09/ethereum-bitwise.jpg” />
Bitwise filed its application for an ethereum spot ETF with the SEC on March 28.
The company presented a S-1 form for a fund titled Bitwise ethereum ETF. Like other similar applications, the fund aims to provide exposure to the value of eth held in its trust.
The filing includes several vital details, notably that Bitwise intends to list on the NYSE Arca exchange and plans to use Coinbase Custody as a custodian. However, it did not reveal information about the ticker or fees.
The Bitwise app looks at ethereum staking as a broad aspect of ethereum itself. However, the application does not discuss the possibility of the fund staking eth and earning returns, unlike competing applications from Ark 21Shares and Fidelity.
Strong correlation between futures and spot
NYSE Arca also filed a related 19b-4 filing on March 28, proposing a rule change to allow it to list the Bitwise ethereum Spot ETF.
Bit by bit contributed an analysis of the presentation, 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 bitcoin spot ETFs to meet certain SEC requirements related to monitoring potential market manipulation.
Establishing a correlation between bitcoin futures markets and spot markets was crucial to securing the approval of the first bitcoin spot ETFs in January.
The chances of approval are low.
Despite Bitwise's latest filing, expectations for ethereum's pending spot ETFs are poor.
Bloomberg analyst Eric Balchunas said on March 11 that ethereum spot ETFs have a 35% chance of approval by May 23, primarily due to a lack of signals from the SEC that led to earlier approvals from bitcoin Spot ETF. Polymarket has a 20% chance of getting an eth ETF approved by the end of May.
The SEC must approve or reject a timely application for VanEck's ethereum ETF by May 23. However, the SEC is likely to decide on all similar applications simultaneously.
At least seven asset managers, in addition to Bitwise, have pending applications.
The post Bitwise Files Detect ethereum ETF App appeared first on CryptoSlate.
