CoinDesk Reports:
Asset management firm Bitwise submitted its latest registration statement for a proposed Ethereum spot ETF to regulatory authorities on Wednesday, revealing plans to waive fees. While largely procedural, market observers see this as a sign of an imminent Ethereum ETF launch.
Bloomberg ETF analyst James Seyffart tweeted, “Expect more news from other issuers later this week.” “We think these things could come to market later next week or the week of the 15th.”
The amended filing submitted to the U.S. Securities and Exchange Commission (SEC) states that Bitwise will waive its fund’s initial $500 million management fee once its Ethereum ETF shares are listed on exchanges.
Bitwise’s move mirrors those of Franklin Templeton and VanEck, which included fee waivers in their respective applications for $10 billion and $1.5 billion ETF candidates.
Anticipation for Ethereum spot ETF trading has been steadily growing since the SEC approved several so-called 19b-4 forms in late May, though it has yet to approve the s-1 form necessary for trading to commence, according to Bloomberg ETF analyst Eric Balchunas.
Balchunas noted on Twitter that Bitwise submitted the modified S-1 one day before its expiration, suggesting Bitwise “wanted to get it out of their pipeline,” while the SEC’s latest round of comments seemed minimal.
He said, “From what I understand, last round of comments ‘meaningless’ — zero updates.” Balchunas agreed such products seem poised to start trading this month, questioning why regulators appear to be dragging their feet, given the satisfaction expressed with most of the filings companies have submitted so far.
He wrote, “Given how perfunctory these comments are, it would seem they could have been easy to trade by now.” “It could be an ‘issue’ issuer slowing things down or just summer.”
Shortly after approval of the Ethereum spot ETF on May 23, the cryptocurrency surged to around $4,000. However, as the approval process continued, Ethereum’s price has retreated, falling to $3,270 at the time of writing.
SEC Chairman Gary Gensler said last month that the process of launching an Ethereum spot ETF is “progressing well,” indicating at Bloomberg’s Investment Summit that progress hinges on asset management firms providing full disclosures.
While Bitwise’s amended filing saw minimal changes, it did include new disclosure language. For instance, a clause was inserted in a section on oversight stating, “SEC Chairman has stated that under existing law, the SEC has authority to regulate the digital asset industry.”
Bitwise also added disclosures indicating certain digital asset trading platforms may not comply with applicable rules under regulatory oversight.
Lastly, a section outlines the “initial creation of Ether,” examining Ethereum’s initial 72 million supply and how much was crowdfunded to the public in 2014, alongside distributions to the Ethereum Foundation and network developers.
Edited by Ryan Ozawa.
