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Bitwise Applies for Ethereum Spot ETF
Crypto investment firm Bitwise has submitted an application to the Securities and Exchange Commission (SEC) to launch a spot Ethereum exchange-traded fund (ETF). This move positions Bitwise as one of the contenders in the race to introduce the first Ethereum spot ETF, following the successful launch of Bitcoin spot ETFs earlier this year.
Bitwise Ethereum Trust Proposal
According to the S-1 registration form filed by Bitwise, the proposed “Bitwise Ethereum Trust” would hold Ethereum and potentially engage in staking activities through trusted providers to earn additional rewards. Staking involves locking up ETH to secure the Ethereum network and validate transactions, with participants receiving newly minted ETH as a reward.
Interest in Spot Ethereum ETFs Surge
Bitwise’s introduction into the Ethereum spot ETF competition aligns with the growing interest from traditional financial firms to offer such products. In recent months, industry giants such as BlackRock, Grayscale, and VanEck have also filed proposals with the SEC to launch their own Ethereum spot ETFs. The increasing number of applicants highlights the demand for investment products that offer exposure to the second-largest cryptocurrency without requiring investors to directly purchase and store it themselves.
Delays and Optimism
The SEC has delayed decisions on several high-profile Ethereum spot ETF applications. Initial predictions anticipated delays until May 23, with some experts now believing that these applications will be denied. Despite the delays, some experts maintain optimism regarding the prospects of Ethereum spot ETFs.
Standard Chartered’s Prediction
Standard Chartered, a British multinational bank, expects the SEC to approve such products by May, citing the lack of designation of ether as a security by the regulator. The bank also predicts that the price of ETH could reach $8,000 by the end of this year and $14,000 by the end of 2025, partially driven by the anticipated approval of spot ETFs.
Ethereum Network Milestones
Meanwhile, the Ethereum network has surpassed one million validators, with approximately 32 million Ether, worth around $114 billion, staked within the network. The 32 million ETH staked represents approximately 26% of the total supply, highlighting the substantial commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
