Site icon Protechbro: Top Stories on Bitcoin, Ethereum, Web3, & Blockchain

Bitwise Invests $2.5M in Amended Spot Ether ETF Bid

Bitwise Invests $2.5M in Amended Spot Ether ETF Bid

Bitwise Invests $2.5M in Amended Spot Ether ETF Bid

The registration documentation for Bitwise’s spot Ethereum exchange-traded fund (ETF) was revised on Tuesday. The asset manager still anticipates SEC approval to list and trade its offering.

Companies in the United States must submit an S-1 form to the Securities and Exchange Commission (SEC) before the public sale of new investment products.

Bitwise disclosed a $2.5 million capital investment in its most recent update to initiate the fund. According to the filing, the funds will be utilized to acquire Ethereum before the fund’s commencement of stock market trading.

Pantera Capital, a crypto venture capital firm, expressed interest in purchasing shares in Bitwise’s spot Ethereum ETF for up to $100 million.

“However, these potential purchasers may opt to acquire additional, fewer, or no shares, as indications of interest are not legally binding agreements or commitments to purchase,” Bitwise explained.

Uncertain Launch Timeline for Bitwise ETH ETF

Last month, the Securities and Exchange Commission (SEC) approved several Ethereum ETFs.

However, individual ETF issuers were still required to obtain approval for their specific products. Consequently, Bitwise was the first to revise its S-1 filing in response to the SEC’s initial feedback.

However, Bloomberg ETF analyst James Seyffart is uncertain whether additional modifications will be necessary before the ETF’s launch.

“There is no way to predict the launch date of these items based on this filing,” Seyffart stated on X about Bitwise updates. “No further updates may be necessary; however, adjustments may be necessary.”

However, they require ultimate SEC approval. He also stated that the SEC will primarily determine the launch date.

He thinks that a launch before July 4 is feasible.

Fidelity modified its application for a spot in the Ethereum ETF with the SEC last month. The update clarified that the fund will not involve staking any Ethereum tokens.

Politics Influence the SEC’s U-turn on Spot Ether ETFs

According to reports, the Securities and Exchange Commission (SEC) requested that ETF issuers revise their applications in response to potential political pressure. It indicates a potential change in its position on spot Ether ETFs.

Seyffart claimed that the Biden administration’s actions and the reactions from the crypto community most likely influenced the SEC’s change in position on spot Ether ETFs.

“We believe that this was a wholly political decision.” He stated, “We believe that the SEC made a 180-degree turn.”

Exit mobile version