Ethereum ETFs Await Final SEC Green Light as Bitwise and VanEck Oppose Initial Fees

• Bitwise nears Ethereum ETF launch after amending its S-1 form, with analysts predicting trading within two weeks.
• SEC approval of 19b-4 forms for Ethereum ETFs sparks anticipation, despite the slow approval process for S-1 statements.
• Bitwise and VanEck introduce fee waivers to attract investors, showcasing competitive strategies in the Ethereum ETF market.

Bitwise Asset Management is edging closer to launching its Ethereum Exchange Traded Fund (ETF), having recently submitted an amended S-1 registration form. This comes just before the July 8 deadline, indicating some progress. Market analysts predict that Bitwise’s Ethereum ETF could begin trading within the next two weeks.

SEC Approval and Market Implications

The Securities and Exchange Commission (SEC) approved the 19b-4 forms for eight Ethereum ETFs, including Bitwise, on May 23. Despite this approval, issuers must have their S-1 statements approved before trading can commence. This dual-step process has kept the market waiting. While the SEC has taken its time with the approvals, perhaps due to various internal factors, analysts remain optimistic about a mid-July launch.

In its amended S-1 form, Bitwise included a six-month fee waiver for the first $500 million in assets under management (AUM). This aims to attract initial investors by lowering the entry barrier. Similarly, VanEck, another ETF issuer, announced a fee waiver for its Ethereum ETF last week. These competitive strategies reflect the intense market competition and proactive regulatory compliance efforts by the issuers.

Analysts’ Insights and Future Filings

Bloomberg ETF analyst James Seyffart highlighted the frequent amendments in the S-1 forms, anticipating more filings from other issuers in the coming week. This pattern suggests a coordinated effort to meet regulatory requirements. Senior Bloomberg ETF analyst Eric Balchunas expressed mild surprise at the SEC’s deliberate pace but noted that the minimal changes required in the latest amendments should expedite the approval process.

Investor Anticipation and Final Steps

As Bitwise makes final preparations, the market looks to the SEC for the green light. Despite the slow approval process, the consistent updates and fee waivers signal the issuers’ readiness to launch their Ethereum ETFs. Investors eagerly await the final approval, with hopes that trading will begin by mid-July.

Bitwise’s latest move signifies its readiness to enter the market, reflecting broader trends among issuers to streamline their offerings and comply with regulatory standards. The market remains on high alert, anticipating the SEC’s final decision and the subsequent launch of Ethereum ETFs.