Key Points
- Bitwise has requested a delay in the approval of a spot Ethereum ETF until December 2024.
- Bitwise CIO Matt Hougan believes the current market focus on Bitcoin could hinder the success of an Ethereum ETF.
Bitwise, an asset management firm, has surprisingly requested a delay in the approval of a spot Ethereum (ETH) Exchange Traded Fund (ETF).
The firm, which recently amended its filing for an ETH ETF on 28th March, would prefer the approval to be postponed until December 2024.
Market Focus on Bitcoin
In a recent interview with Forbes, Bitwise’s Chief Investment Officer (CIO) Matt Hougan expressed his belief that the asset management sector is overly focused on Bitcoin (BTC) currently.
According to Hougan, an approval of a spot ETH ETF in May would not generate enough interest to mirror the success of BTC ETFs.
Hougan was quoted saying, “I think the ether ETFs will be more successful if they launch in 12 months than if they launch in May.”
He further stated, “Part of me hopes that it’s December or something like that because I think that would be better for the market.”
ETH ETF Applications Delayed
Up until now, the ETH ETF applications submitted by Grayscale, VanEck, Hashdex, and Ark 21Shares have experienced delays.
The final deadline for most of these early applications is in May.
However, Bloomberg ETF analysts Eric Balchunas and James Seyffart have stated that the chances of an ETH ETF approval in May are low.
Similarly, Hougan acknowledged the slim odds of a May approval but remained confident that ETH ETFs will eventually be approved.
Hougan also emphasized the significance of the recent Dencun upgrade, although it was not a topic of discussion during his meetings with investors.
This led him to believe that it could be challenging to shift the market’s focus from Bitcoin to Ethereum at this time.
In the meantime, Ethereum’s price continues to consolidate around $3500.
The cryptocurrency was range-bound last week at the same price level.
It remains uncertain whether Ethereum will attempt a price breakout in early April, especially as the odds of ETH ETF approvals in May remain low.
