Cryptocurrency asset management firm Bitwise is considering offering an exchange-traded product (ETP) covering Ethereum’s layer-2 (L2) networks and applications, according to Matt Hougan, Bitwise’s chief investment officer.
Hougan expressed both embarrassment and excitement over Bitwise not having such a product yet, emphasizing its potential in the evolving Ethereum ecosystem.
Hougan conveyed “extraordinary confidence” in the evolution of the Ethereum ecosystem but noted uncertainty regarding which L2s and applications will emerge as leaders.
He suggested that a product encompassing all these components would be ideal for investors, considering the multitude of possibilities in the future.
Hougan highlighted the significance of the Dencun upgrade, stating that the market is underestimating its impact by a factor of 10 or 20.
He emphasized that this upgrade is a game-changer for Ethereum, although it has not been fully recognized by the market yet.
Hougan expressed concerns about the market’s readiness for a spot Ether exchange-traded fund (ETF) by May and suggested that December might be a more suitable timeframe.
He noted that financial advisers are still adjusting to spot Bitcoin ETFs, and rushing the approval process for an Ether ETF may not be ideal.
Bitwise filed forms with the U.S. Securities and Exchange Commission (SEC) to list a spot Ether ETF on March 28, joining other firms like BlackRock, VanEck, and Grayscale in seeking approval.
Grayscale’s chief legal officer, Craig Salm, remains optimistic about Ether ETF approval, citing successful resolutions of common issues with spot Bitcoin ETFs.
Bitwise’s Bitwise Bitcoin ETF (BITB) has seen significant inflows, amassing over $1.6 billion, making it the fourth-largest Bitcoin ETF by flows.
Despite some uncertainties, Bitwise remains active in the ETF space, positioning itself among the top issuers.
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