Saturday, November 23, 2024

Ethereum ETF: Bitwise files amended S-1, aims for 4 July launch

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  • ETH ETF launch is now closer than ever as issuers begin submitting amended S-1s.
  • Whales have been positioning for launch, suggesting ETFs will be a key market catalyst in summer. 

Market analysts have been waiting for amended S-1s (registration statements) from potential spot Ethereum [ETH] ETF issuers, which are the last step before the SEC approves them for launch. 

Digital asset manager and potential issuer, Bitwise, began this last step on 18th June. It submitted its amended S-1 to the agency, but the fee charges haven’t been included yet. 

Reacting to the update, Bloomberg ETF analyst James Seyffart noted

‘I believe this filing from @BitwiseInvest  is the first of the amended #Ethereum ETF S-1’s. This will contain the changes from the SEC’s first round of comments.’

The analyst added that Pantera Capital, a crypto-focused VC firm, was planning to put $100 million into Bitwise’s ETH ETF product (ETHW) 

‘Looks like Panterra will be putting up to $100 million into @BitwiseInvest’s Ethereum ETF — $ETHW’ 

The VC reportedly pumped $200 million into Bitwise’s spot US BTC ETF product in January. 

Other issuers are expected to submit their amended S-1s in the coming days. However, Seyffart noted that the amends ‘might not need additional but might require tweaks’.

4th July in focus for ETH ETF approvals

Along with his colleague, Eric Balchunas, the analysts maintained that the products could be approved and launched by 4th July. 

The SEC chair, Garry Gensler, recently confirmed that the approvals could be likely by summer. Overall, most market observers expected an approval by early July. 

That said, there have been divergent views on institutional demand for ETH ETF products. Some projected low demand since the products won’t have a ‘staking’ feature. 

However, Ophelia Snyder, co-founder of digital asset manager 21Shares, maintained that the lack of staking will not affect institutional demand.

In fact, the executive added that staking could affect liquidity, especially when the lock-up period is extended. 

In the meantime, ETH was up +4% in the past 24 hours and traded at $3.54K. Besides, ETH whales were on the move as they eyed the potential launch of the ETH ETF in early July.

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