Bitwise Advocates for Ethereum ETF Approval in December
Bitwise Calls for Delay in Ethereum : Bitwise, a prominent asset management firm, has surprisingly urged for a delay in the approval of a spot Ethereum (ETH) ETF, preferring a launch in December 2024 instead of May. The firm recently submitted an amended filing for an ETH ETF but believes that launching in December would garner more interest and potentially replicate the success of Bitcoin (BTC) ETFs.
Bitcoin Dominance in Traditional Finance
Matt Hougan, Bitwise’s Chief Investment Officer (CIO), expressed concerns over the asset management sector’s overwhelming focus on Bitcoin. He argues that this focus could adversely affect the reception and success of ETH ETFs. According to Hougan, launching ETH ETFs in May might not generate enough interest to match the popularity of BTC ETFs.
Low Odds of May Approval
ETH ETF applications from several entities, including Grayscale, VanEck, Hashdex, and Ark 21Shares, have faced delays. While the final deadline for many early applications is in May, analysts, including those from Bloomberg, maintain low odds of approval. Despite this, Hougan remains confident in the eventual approval of ETH ETFs.
Market Sentiment and Dencun Upgrade
Hougan acknowledged the market’s consensus on the possibility of ETH ETF approval in May but considers it unlikely. He remains optimistic about the future of ETH ETFs but notes challenges in shifting investor focus from Bitcoin to Ethereum, especially following the recent Dencun upgrade, which didn’t receive much attention from investors.
Ethereum Price Consolidation
Meanwhile, Ethereum (ETH) continues its price consolidation around $3500, remaining range-bound in the past week. Despite the uncertainty surrounding ETH ETF approvals in May, investors anticipate potential price movements as April progresses, keeping a close eye on any breakout attempts.
Conclusion
Bitwise’s call for a delay in Ethereum ETF approval reflects concerns over Bitcoin dominance in the asset management sector. While ETH ETF applications face delays, market sentiment remains cautious, with analysts predicting low odds of approval in May. As Ethereum continues its price consolidation, investors await potential developments in ETF approvals and market dynamics in the coming months.
