Bitwise: SEC may delay the approval of Ethereum ETF to December

Source: Blockchain Knights

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

The development comes after Bitwise Asset Management intends to list a spot Ethereum ETF.

Bitwise launched its spot BTC ETF, BITB, on January 11. Since then, the ETF has seen a meteoric rise, 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 spot ETFs, highlighting their unprecedented growth compared to historical ETF launches.

Hougan emphasized: "These (spot BTC ETFs) are the fastest growing ETFs ever, growing much faster."

"I believe the fastest growing ETF before this was QQQM, which grew from zero to $5 billion in a year. And these spot BTC ETFs have netted over $10 billion in less than two months."

Despite the success of the BTC ETF, Hougan warned that the approval of the Ethereum ETF may be delayed.

This stems from the cautious attitude of regulators due to the growing interest in Crypto asset investments and the complex market dynamics.

But Gougan also expressed confidence that the Ethereum ETF will eventually be launched. However, he expects that the delay until later this year may benefit the market by giving traditional finance more time to understand and accept Crypto assets.

"We think this is the natural path that Crypto asset investors have been following for 15 years. They started with BTC and have always wanted to get exposure to other things."

"I think Ethereum will be very attractive. And the Ethereum ETF will be more successful if it is launched in December than in May. I know it sounds silly, but I think traditional finance is still digesting BTC, and if you give them time to adapt to BTC and Crypto assets, they will be ready for the next thing."

Following the huge success of the BTC ETF, this strategic patience may pave the way for a more stable and smarter entry into the Ethereum market for both institutional and retail investors.

Hougan’s insights reveal a significant shift in the perception of crypto assets, from skepticism to recognition of their potential for significant investment returns.

As the SEC weighs its decision, the crypto asset community remains on edge, hoping for a green light to further legitimize and promote investment in Ethereum and beyond.