Bitwise filed an application for a spot Ethereum ETF with the SEC on March 28.
The company filed a Form S-1 for a fund called the Bitwise Ethereum ETF. Like other similar applications, this fund aims to provide exposure to the value of ETH held in trust.
The filing includes several important details: Bitwise aims to list on the NYSE Arca exchange and plans to use Coinbase Custody as its custodian. However, information on items and fees was not disclosed.
Bitwise’s application discusses Ethereum staking as a broader aspect of Ethereum itself. However, this application, unlike competing applications from Ark 21Shares and Fidelity, does not discuss the possibility of the fund staking ETH and earning returns.
Strong futures/spot correlation
NYSE Arca also filed a related 19b-4 filing on March 28, proposing rule changes to allow Bitwise’s spot Ethereum ETF to be listed.
By bit Contribute A paper analysis found a “strong correlation” between the ETH spot market and the CME ETH futures market.
This analysis aims to establish the same claims as spot Bitcoin ETFs to meet certain SEC requirements related to monitoring potential market manipulation.
Establishing correlation between Bitcoin futures and spot markets was critical to securing the approval of the first spot Bitcoin ETF in January.
The odds of approval are low.
Despite Bitwise’s recent filing, expectations for a spot Ethereum ETF are low.
Bloomberg analyst Eric Balchunas said on March 11 that there was a 35% chance that a spot Ethereum ETF would be approved by May 23. This is primarily due to the lack of indications from the SEC leading to the approval of a spot Bitcoin ETF. Polymarket has a 20% chance of receiving approval for the ETH ETF by the end of May.
The SEC has until May 23 to approve or reject VanEck’s application for a spot Ethereum ETF. However, the SEC will likely decide on all similar applications simultaneously.
At least seven asset managers, excluding Bitwise, are waiting to apply.
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