Bitwise Reveals $2.5M Seed Investment in Amended Spot Ethereum ETF filing
Bitwise on Tuesday amended the registration documentation for its spot Ethereum exchange-traded fund (ETF). The asset manager is still awaiting SEC approval to list and trade its offering.
In the US, companies must file an S-1 form with the SEC before selling new investment products publicly.
In its update, Bitwise revealed a $2.5m seed investment to jumpstart the fund. This money will be used to buy Ethereum before the fund starts trading on the stock market, according to the filing.
Crypto venture capital firm Pantera Capital showed interest in buying up to $100m worth of shares in Bitwise’s spot Ethereum ETF.
“However, because indications of interest are not binding agreements or commitments to purchase, these potential purchasers could determine to purchase more, fewer or no shares,” Bitwise added.
Uncertain Launch Timeline for Bitwise ETH ETF
Last month, the SEC greenlit several Ethereum ETFs. But individual ETF issuers still had to get their specific products approved. Subsequently, Bitwise became the first to update its S-1 filing after the SEC’s initial feedback. But it’s unclear if further revisions will be required before the ETF can launch, according to Bloomberg ETF analyst James Seyffart.
No way to know when these things will launch based off of this filing. Might not require any additional updates, might require tweaks. But they need final SEC approval. Launch timing will mostly be up to the SEC. @ericbalchunas & I *think* they SHOULD launch before July 4th
— James Seyffart (@JSeyff) June 18, 2024
“No way to know when these things will launch based off of this filing,” Seyffart said on X about Bitwise’s update. “Might not require any additional updates, might require tweaks. But they need final SEC approval. Launch timing will mostly be up to the SEC,” he added.
He believes a launch before July 4 is possible.
Last month, Fidelity tweaked its application for a spot Ethereum ETF with the SEC. The update clarified that the fund won’t involve staking any Ethereum tokens.
Politics Behind SEC’s U-turn on Spot Ether ETFs
The SEC reportedly requested revisions to applications from ETF issuers, after possible political pressure. It signals a potential shift in its stance on spot Ether ETFs.
Seyffart previously told Cryptonews that the Biden administration’s actions and responses from the crypto community likely influenced the SEC’s shift in stance on spot Ether ETFs.
“We think this was a complete political decision. We think it was a 180 from the SEC,” he said.
