Here's why Bitwise CEO wants the SEC to postpone approval of Ethereum ETFs

Bitwise Asset Management, a cryptocurrency index fund provider, wants the US Securities and Exchange Commission (SEC) to postpone approval of an ethereum exchange-traded fund (ETF) until December.

Bitwise Chief Investment Officer Matt Hougan told Forbes in a interview that the industry's focus on bitcoin-related products may hinder the attention needed for the development and approval of an ethereum ETF.

Spot the Success and Market Readiness of bitcoin ETFs

The move comes in the wake of the company's achievement with the Bitwise bitcoin ETF (BITB), introduced on January 11, which amassed more than $2 billion in assets under management, positioning it as the fifth largest in the market.

Hougan reflected on the rapid growth of these types of financial products: “These bitcoin spot ETFs are, by a large fraction, the fastest growing ETFs of all time,” he commented.

Additionally, he highlighted the various investor groups that expressed interest, including retail investors, independent financial advisors, hedge funds, venture capital funds, family offices and corporate entities. He emphasized that market enthusiasm for spot bitcoin ETFs has exceeded initial forecasts, indicating demand for crypto-focused investment instruments.

However, despite the success of bitcoin spot ETFs, Bitwise believes ethereum deserves the same attention. Hougan expressed confidence in the growth potential of the ethereum ecosystem, particularly with recent upgrades like the Dencun upgrade, which he sees as a catalyst for an increase in innovative applications. He emphasized the need for investors to broaden their horizons beyond bitcoin and recognize the importance of ethereum.

In discussions about the potential ethereum spot ETF, Hougan believes that postponing approval would provide a better opportunity for traditional finance to get used to bitcoin spot ETFs and make it easier to adopt eth offerings. Bit by bit recently sent an application for an ethereum spot ETF to the SEC on March 28, 2024.

nfts, equity products and institutional adoption

Hougan also provided insight into various aspects of the crypto space. He discussed the potential of non-fungible tokens (nfts), emphasizing their role as a late-stage derivative of crypto wealth and the growing maturity of such projects.

He also provided perspectives on capital products such as BITQ and BWEB, detailing the differences between them and shedding light on their approach in the mining space. He shared insights on MicroStrategy's role as a leveraged player in bitcoin and identified underrated projects like Render and Immutable in the cryptocurrency market.

Finally, he mentioned the early stage of cryptocurrency adoption and noted that there are still significant untapped opportunities, particularly in the institutional investor space.

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