Bitwise Asset Management, a provider of investment management services, has announced the launch of two Ethereum ETFs on October 2nd. These ETFs will provide investors with access to Chicago Mercantile Exchange (CME) Ether futures.
Bitwise Brings 2 New ETFs
As per the recent report, Bitwise, a company based in San Francisco has announced that trading will commence for the Bitwise Ethereum Strategy ETF and the Bitwise Bitcoin and Ether Equal Weight Strategy ETF.
Commenting on this development, Matt Hougan, the Chief Investment Officer of Bitwise stated:
“Ethereum offers a more extensive portfolio opportunity compared to Bitcoin. Some investors view Ethereum as an alternative, while others perceive it as a conventional growth investment, encompassing attributes of both.“
Rejection of Spot BTC ETFs
The SEC’s history of rejecting spot Bitcoin ETF applications has persisted for quite some time. Frequently, the regulator cites the absence of security standards to safeguard against fraudulent activities. However, the resolution of the Grayscale lawsuit could potentially impact the timing of the SEC’s decisions on approving spot Bitcoin ETF applications.
The Grayscale Lawsuit
On August 29th, a U.S. court cleared the way for the approval of Grayscale’s spot Bitcoin ETF by rejecting the agency’s objections. Grayscale, the company aiming to transform the Grayscale Bitcoin Trust (GBTC) into a comprehensive ETF product, was once a victim of this rejection from the SEC.
Simultaneous Approvals of ETFs
In August, a report from The Wall Street Journal indicated that the United States Securities and Exchange Commission (SEC) was anticipated to simultaneously grant approval for multiple requests regarding Ether futures exchange-traded funds (ETFs).
However, a notable development was the revelation of a “surveillance-sharing agreement” in an amended filing by Coinbase concerning its efforts to launch a Bitcoin exchange-traded fund (ETF) based on the spot market. Grayscale stated that the existing surveillance-sharing agreements (SSAs) between Coinbase and spot ETF providers are “not a new idea” and do not meet the SEC’s requirements.