Bitwise Files S-1 Form for Spot Ethereum ETF Aforetime; What Next?

Bitwise's Strategic Moves in the Evolving ETF Landscape

Bitwise Invest, a crypto index fund manager and a key player in Spot Bitcoin ETFs has refiled its S-1 form for spot Ethereum ETFs before the deadline. The deadline set for submitting the updated S-1 form was July 8 and early submission indicates the launch of Spot Ethereum ETFs soon. 

At the press time, ETH was trading at $3,216.88, indicating a 4.45% drop in a day with $386,554,141,738 in market cap and $17,959,744,285 in 24-hour volume. In the past 7 days, the coin price declined from $3,475.41 on June 28 to $3,216.88, which is a 4.55% drop.   

On May 23, 2024, the Securities and Exchange Commission (SEC) approved 19b-4 forms for all the eight spot Ethereum ETF applicants. However, the S-1 forms were returned to several applicants with some feedback.

The SEC released a document that includes Bitwise Investment’s updated S-1 application. 

Source: SEC

The crypto index fund manager made a few changes in the new filing, mainly in the waiver fees. As per the update, the platform will waive the sponsor fee for the first $500 Million in assets. However, the fee structure for the offerings wasn’t disclosed by the company yet.  

Similarly, VanEck, the investment management firm planned to waive fees for the first $1.5 Billion in assets before 2025, after which it will charge a sponsorship fee of 0.20%. Also, Franklin Templeton will waive up to $10 Billion for the first six months. Moreover, VanEck also filed for Spot Solana ETFs on June 27.        

Expert’s Opinion on the Action

James Seyffart, ETF analyst at Bloomberg is expecting more from other issuers throughout the rest of the week. 

Source: X

“We're thinking these things could potentially list later next week or the week of the 15th at this point.”, Said Seyffart. 

The analyst also added that he has low confidence in these tentative dates as the SEC hasn’t disclosed any details yet. Moreover, the Ethereum community took Bitwise Investment’s decision positively, hoping the approval within the next week. 

Conclusion

Bitwise Invest's proactive refiling of its S-1 form for a spot Ethereum ETF ahead of the deadline signals a strong possibility of the product's imminent launch. Despite a recent dip in Ethereum's price, the crypto community remains optimistic about the potential approval. The SEC's nod to 19b-4 forms for Ethereum ETF applicants and Bitwise's strategic fee waiver for the first $500 million in assets reflect a competitive landscape among fund managers, with VanEck and Franklin Templeton also making notable moves.

Also Read: Eight Financial Giants File for Spot Ethereum ETFs