Bitwise Asset Management, a key player in the cryptocurrency index fund market, has urged the U.S. Securities and Exchange Commission (SEC) to postpone the approval of a spot Ethereum Exchange-Traded Fund (ETF) until December. Chief Investment Officer Matt Hougan shared with Forbes his concerns that the industry’s current emphasis on Bitcoin-related products may be taking away the necessary attention needed for the development and approval of an Ethereum ETF.
Bitwise has already made waves in the market with its Bitwise Bitcoin ETF (BITB), launched on January 11, which has quickly gathered over $2 billion in assets under management, making it the fifth largest ETF on the market. Hougan noted the exceptional growth of Bitcoin ETFs, highlighting their popularity among various investor groups, including retail investors, financial advisors, hedge funds, venture capital firms, family offices, and corporations.
Despite the success of Bitcoin ETFs, Bitwise is adamant about the importance of giving Ethereum equal attention. Hougan expressed his confidence in the future growth of the Ethereum ecosystem, especially with recent upgrades like the Dencun upgrade, which is expected to drive innovation and adoption. He stressed the need for investors to diversify beyond Bitcoin and acknowledge the significance of Ethereum in the crypto market.
Bitwise’s decision to delay approval for the spot Ethereum ETF is aimed at allowing the traditional finance sector to familiarize itself with Bitcoin ETFs and make it easier for them to embrace Ethereum offerings in the future. The company submitted its application for the spot Ethereum ETF to the SEC on March 28, 2024, signaling their commitment to expanding investment options in the crypto space.
Apart from advocating for the Ethereum ETF, Hougan also shared his insights on other aspects of the crypto market. He discussed the potential of non-fungible tokens (NFTs) as a derivative of crypto wealth, highlighting their increasing popularity and maturity. Additionally, he touched on equity products like BITQ and BWEB, explaining their role in the mining sector and their unique approaches. Hougan also shed light on the involvement of companies like MicroStrategy in leveraging Bitcoin and identified promising projects like Render and Immutable that are often overlooked in the market. He concluded by emphasizing the early stage of crypto adoption and the untapped opportunities that lie ahead, especially for institutional investors.
By advocating for a delay in approving the Ethereum ETF, Bitwise is pushing for a more inclusive and diverse crypto market that goes beyond Bitcoin, paving the way for a new era of investment opportunities and innovation.