Bitwise Asset Management, a leading provider of cryptocurrency index funds, has called on the US Securities and Exchange Commission (SEC) to delay the approval of Ethereum spot ETFs until December.
The firm’s Chief Investment Officer, Matt Hougan, believes the asset management industry is currently too preoccupied with Bitcoin products to pay as much attention to the development of an Ethereum ETF.
Bitwise, which launched its spot Bitcoin ETF Bitwise Bitcoin ETF (BITB) on January 11, currently manages over $2 billion in assets and ranks fifth among the largest ETFs. On March 28, the firm filed forms S-1 and 19-b4 with the SEC to list its spot Ethereum ETF.
Hougan noted that many Registered Investment Advisors (RIAs) are willing to invest ahead of Bitcoin’s halving and see it as an important catalyst. Hougan added that despite its recent underperformance, many people are currently exploring opportunities in the Bitcoin mining industry.
Hougan added that the current demand increase is more critical than the halving. While the halving will eliminate $10 billion in annual supply, ETFs attracted $10 billion in net new flows in the first two months, according to the expert. He noted that as long as ETFs continue to buy 8,000 to 10,000 Bitcoins each day and miners produce only 900 (soon to be 450), the price should rise until long-term wallets agree to sell.
Bitwise is also very interested in Ethereum spot ETFs and aims to be a major participant in this space. Hougan expressed confidence in the eventual approval of an Ethereum ETF, but suggested the market consensus for them to be approved in May was unlikely. He believes that the traditional financial industry (TradFi) is still digesting Bitcoin and needs time to get comfortable with the crypto sector before being ready for the next step.
Hougan concluded by expressing his belief that investors and advisors will eventually want to gain exposure to more of the crypto market, starting with Bitcoin and moving on to other assets like Ethereum.
*This is not investment advice.
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Source: https://en.bitcoinsistemi.com/one-of-the-companies-filing-for-an-ethereum-spot-etf-calls-on-the-sec-to-not-approve-these-products-for-now-heres-why/