SEC May Delay Ethereum ETF Until December: Bitwise

According to Bitwise’s Chief Investment Officer, Matt Hougan, the Securities and Exchange Commission (SEC) is considering a delay in approving highly anticipated Ethereum exchange-traded funds (ETFs).
This development comes on the heels of Bitwise Asset Management’s intention to list a spot Ethereum ETF.
Potential Ethereum ETF Approval Delay
Bitwise launched its spot Bitcoin ETF, the Bitwise Bitcoin ETF (BITB), on January 11. Since then, the ETF has seen a meteoric rise, amassing over $2 billion in assets and ranking fifth in the so-called “Cointucky Derby.”
Hougan shared insights into the explosive growth of BITB and other spot ETFs, underscoring their unprecedented acceleration compared to historical ETF launches.
“These [spot Bitcoin ETFs] are the fastest growing ETFs of all time by a large fraction. I believe the fastest growing ETF prior to these was the Nasdaq 100 ETF (QQQM), which went from zero to $5 billion in one year. These ETFs have pulled in net $10-plus billion in under two months,” Hougan emphasized.

Despite the sucess spot Bitcoin ETFs have seen, Hougan warned about the potential delay in the Ethereum ETF’s approval. This may stem from regulatory caution, given the growing interest in cryptocurrency investments and the complex dynamics of the market.
Hougan expressed confidence in the eventual launch of an Ethereum ETF. Still, he anticipated that a delay until later in the year might actually benefit the market by allowing traditional finance (TradFi) more time to understand and embrace crypto.
“We think that’s a natural pathway that crypto investors have followed for 15 years. They start with Bitcoin and then they want exposure to other things. I think Ethereum will be very attractive. I think the [Ethereum] ETFs will be more successful if they launch in 12 months than if they launch in May. I know that sounds goofy, but I think TradFi is still digesting Bitcoin
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