Summary:

• The SEC may delay approval of the highly anticipated Ethereum exchange-traded fund (ETF), according to Bitwise filings.

• Bitwise’s Bitcoin ETF launched in January quickly accumulated $2 billion in assets.

• Matt Hougan believes a delay could benefit markets by giving traditional finance time to adapt.

The U.S. Securities and Exchange Commission (SEC) is considering delaying approval of the highly anticipated Ethereum exchange-traded fund (ETF), according to Bitwise Chief Investment Officer Matt Hougan.

This development comes on the heels of Bitwise Asset Management’s intention to list a spot Ethereum ETF.

Ethereum ETF approval may be delayed

Bitwise launched its spot Bitcoin ETF, the Bitwise Bitcoin ETF (BITB), on January 11. Since then, the ETF has experienced explosive growth, amassing over $2 billion in assets and ranking fifth in the so-called “Cointucky Derby.”

Hougan shared insights into the explosive growth of BITB and other cash ETFs, highlighting their unprecedented acceleration compared to historical ETF launches.

Hougan emphasized, “These spot Bitcoin ETFs are the fastest growing ETFs ever, by a huge margin. I believe the fastest growing ETF before this was the Nasdaq 100 ETF (QQQM), which grew from zero in one year to $5 billion. These ETFs had net inflows of over $10 billion in less than two months.”

Despite the success of the spot Bitcoin ETF, Hougan warned that the approval of the Ethereum ETF may be delayed. This may stem from regulatory caution, given the growing interest in cryptocurrency investments and the complex dynamics of the market.

Hougan is confident about the eventual launch of an Ethereum ETF. However, he predicts that delaying until the end of the year may actually benefit the market by giving traditional finance (TradFi) more time to understand and accept cryptocurrencies.

Hougan explained, “I think this is the natural path that crypto investors have followed for 15 years. They start with Bitcoin and then they want to get exposed to other things. I think Ethereum will be very attractive. I think if the Ethereum ETF is in Launching in 12 months will be more successful than launching in May. I know this sounds stupid, but I think TradFi is still digesting Bitcoin and if you give TradFi time to adapt to Bitcoin and cryptocurrencies, they will be next Be prepared in one step.”

This strategic patience may pave the way for institutional and retail investors to get into Ethereum more solidly and wisely following the huge success of the Bitcoin ETF.

Hougan’s insights reveal a significant shift in perceptions of cryptocurrencies, from skepticism to recognition of its huge potential for investment returns. The cryptocurrency community is on edge as the SEC weighs its decision, hoping for approval that could further legalize and boost investment in Ethereum and beyond. #Bitwise #以太坊ETF