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Bitwise has filed an amended S-1 form for its Ethereum exchange-traded fund (ETF), just ahead of its July 8 deadline. This development suggests that the product is nearly ready for market debut, with analysts predicting that the ETFs could begin listing within the next two weeks.
Bitwise Aims for Spot ETH ETF Approval
Bitwise’s updated registration form, submitted on Wednesday, is a critical step towards the launch of its Ethereum ETF. Analysts believe that these products could be listed by mid-July. Sources close to the situation have indicated that the U.S. Securities and Exchange Commission (SEC) might approve the final drafts by the end of next week.
The SEC had previously approved 19b-4 forms for eight spot Ethereum ETFs, including Bitwise, on May 23. However, issuers must have their S-1 statements become effective before trading can commence. This two-step regulatory process has kept the market on edge, eagerly awaiting the launch.
Minor Comments
Despite the relatively minor comments on the S-1 forms, the SEC has taken its time to grant approvals. Any delays from a single issuer could affect the overall timeline. Nevertheless, expectations remain high for a launch this month.
James Seyffart, a Bloomberg ETF analyst, noted the frequent amendments to S-1 forms and expects more filings from other issuers throughout the week. This pattern suggests a coordinated effort to meet regulatory requirements and expedite the launch process.
Senior Bloomberg ETF analyst Eric Balchunas expressed surprise at the SEC’s slow pace, speculating on possible reasons such as summertime vacations. Despite this, he confirmed indications that a launch is imminent, likely within this month.
Few Remaining Hurdles
The SEC’s return of S-1 forms with minimal comments indicates that there are few remaining hurdles. Analysts view this as the final round of feedback, boosting confidence in a near-term launch.
One significant update to the Bitwise S-1 form is the waiver of the sponsor fee for the first $500 million in assets. However, the firm has not disclosed the fee structure beyond this threshold. This strategic move aims to attract initial investors by lowering entry barriers.
Another issuer, VanEck, has also announced that it will waive fees initially. These competitive strategies indicate a broader trend among issuers to make their offerings more appealing to new investors.
Spot ETH ETFs might not live up to the hype, as pointed out by various analysts recently. Some believe that the outflows would lead to an ETH price crash while others are not in support of this theory.