Head of Bitwise: The industry is not ready to approve spot Ethereum ETFs

CIO of the investment company Bitwise Asset Management Matt Hougan called for delaying the approval of applications for spot Ethereum-ETFs until December 2024, writes Forbes.

A Bitwise representative notes that the growth rate of spot ETFs based on the first cryptocurrency has exceeded the company's expectations. Investment products raised more than $10 billion in the first two months, even taking into account the outflow of funds from the Grayscale Investments fund, he emphasized.

Hougan points to significant investor interest in the sector. Retail clients, independent financial advisors and large hedge funds are investing in spot Bitcoin ETFs, the company's CIO said.

The expert believes that the first cryptocurrency, against the backdrop of the launch of crypto funds, has a “clear path” to a value of $100,000. At the same time, Hougan does not know how Bitcoin will behave after reaching this mark. He admits that by this point demand may decline, and many investors will want to sell the asset at such a high price.

CIO Bitwise also said that the hype around Bitcoin-based cryptocurrency ETFs will not allow investment firms to focus on launching Ethereum-based products. For this reason, he proposes delaying approval of another asset class until December.

Hougan claims that Bitwise intends to become a major player in this area. The company is interested in launching spot Ethereum ETFs, but does not want to rush. A firm spokesman sees no real prospect of approval for the asset class in May 2024.

It is worth noting that the company filed an application for a spot Ethereum ETF at the end of March 2024. The Form S-1 filed with the US Securities and Exchange Commission states that the Bitwise Ethereum ETF is an exchange-traded product that issues common stock. Its purpose is to provide access to digital currency held by the trust.