Bitwise, a cryptocurrency asset management firm, has expressed interest in launching an exchange-traded product (ETP) that covers Ethereum’s layer-2 (L2) networks and applications, according to Matt Hougan, Bitwise’s chief investment officer. In an interview with Forbes, Hougan stated that he believes such a product would be great, although he is both embarrassed and excited that Bitwise does not currently offer one. He also expressed confidence in the evolution of the Ethereum ecosystem but acknowledged that it is uncertain which L2s and applications will emerge as the most popular in the future. Hougan emphasized the market’s underestimation of the significance of the Dencun upgrade by a factor of 10 or 20.
Regarding the launch of a spot Ether (ETH) exchange-traded fund (ETF), Hougan expressed concern that the market may not be ready for it in May. He hopes that the United States securities regulator will delay approval until December, as financial advisers are still adapting to the recently approved spot Bitcoin (BTC) ETFs. Bitwise filed the necessary forms with the U.S. Securities and Exchange Commission to list a spot Ether ETF on March 28. Other firms such as BlackRock, VanEck, ARK 21Shares, Fidelity, Grayscale Hashdex, Franklin Templeton, and Invesco Galaxy are also seeking SEC approval for a spot Ether ETF, with May being a crucial period for potential mass approvals.
While some analysts have lowered the odds of spot Ether ETF approval due to the SEC’s apparent lack of engagement with applicants, not everyone agrees. Grayscale’s chief legal officer, Craig Salm, stated that the issues common to spot Ether ETFs have already been resolved with spot Bitcoin ETFs. Bitwise is one of the issuers of spot Bitcoin ETFs, and its Bitwise Bitcoin ETF has accumulated over $1.6 billion in flows, making it the fourth-largest in terms of assets under management.