Katherine Dowling, the Chief Compliance Officer of Bitwise, recently stated that spot Ethereum ETFs are on the verge of approval. In a discussion with Bloomberg, she mentioned that the Securities and Exchange Commission (SEC) is receptive to discussions about various financial products. Dowling highlighted that the SEC and ETF issuers are making progress with each S-1 amendment, indicating a potential imminent launch.
Dowling emphasized Bitwise’s positioning as a “crypto specialist” with a strong focus on the sector, distinguishing the company from competitors such as BlackRock and Fidelity. While Bitwise submitted its latest amendment on July 3, ahead of the July 8 deadline for other applicants, there are still details to be finalized, including sponsor fees in future amendments.
Additionally, Dowling mentioned discussions with the SEC regarding new products in development. She described the communication with the SEC as positive and welcoming. However, she acknowledged the possibility that certain products may require approval under a new SEC chair, potentially leading to delays in market entry. The history of previous product approvals and the market landscape for future products also present challenges.
Dowling did not disclose specifics about the new products under consideration. Currently, VanEck and 21Shares’ spot Solana (SOL) ETFs are the only other pending spot crypto ETFs apart from Bitwise. As of now, Bitwise has not applied for a similar product.
The outlook for spot Ethereum ETFs appears optimistic, with Bitwise making strides towards approval and differentiation in the competitive landscape. While regulatory hurdles and market dynamics pose challenges, the company’s focus on crypto expertise and strategic engagement with the SEC position it favorably for potential product launches in the future.