Bitwise, a cryptocurrency asset management firm, has expressed interest in creating an exchange-traded product (ETP) that covers Ethereum’s layer-2 (L2) networks and applications. Matt Hougan, Bitwise’s chief investment officer, stated in an interview with Forbes that he believes this would be a great product. He also expressed confidence in the evolution of the Ethereum ecosystem, although he acknowledged that it is uncertain which L2s and applications will emerge as the most popular. Additionally, Hougan emphasized that the market is undervaluing the significance of the Dencun upgrade.
In regards to spot Ether (ETH) exchange-traded funds (ETFs), Hougan expressed concern that the market may not be prepared for them by May. He hopes that the United States securities regulator will delay approval until December, as financial advisers are still focusing on the recently approved spot Bitcoin (BTC) ETFs. Bitwise filed the necessary forms with the U.S. Securities and Exchange Commission to list a spot Ether ETF on March 28. Other companies, such as BlackRock, VanEck, ARK 21Shares, Fidelity, Grayscale Hashdex, Franklin Templeton, and Invesco Galaxy, are also seeking SEC approval for a spot Ether ETF.
Although some analysts have lowered their odds for spot Ether ETF approval, citing the SEC’s lack of engagement with applicants, not everyone agrees. Grayscale’s chief legal officer, Craig Salm, stated that issues related to spot Ether ETFs have already been resolved with the spot Bitcoin ETFs. Bitwise is one of the ten issuers of spot Bitcoin ETFs and their Bitwise Bitcoin ETF (BITB) has attracted over $1.6 billion in flows, making it the fourth-largest in terms of assets under management.