- Bitwise Invest follows Valkyrie’s lead, updating its prospectus to transition from a Bitcoin futures ETF to an Equal Weight Bitcoin and Ethereum Strategy ETF.
- The SEC has 15 Ethereum futures ETFs awaiting decisions, with the likelihood of approval increasing as days pass.
Bitwise and Valkyrie Outsmart the Ethereum ETF Queue
In an intriguing development in the ETF sector, Bitwise Invest has recently filed an updated prospectus. This move, designed to transition its Bitcoin futures ETF (BITC) to the
“Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF”,
is planned for October 9, 2023. This strategy seems to be a clever approach in the intense competition to establish the inaugural Ethereum Futures ETF in the US.
Strategic Moves in the Crypto World
James Seyffart, a renowned Bloomberg ETF analyst, shed light on this update. “Bitwise Invest just transitioned BITC from solely focusing on Bitcoin to equally weighing Bitcoin and Ethereum. It’s reminiscent of the tactic Valkyrie Funds took recently, with the change poised to be effective from 10/9/23.” Earlier, Seyffart had also expressed his views on Valkyrie’s move, cleverly terming it a “3D chess move” should it yield the desired results.
We're in new territory. It's been 13 days since Volatility Shares was first in a wave of #Ethereum futures ETF filings. Back in 2021 it was just a couple days before SEC forced withdrawals and was just ~7 days in May of this year. The odds of launching increase as time goes by pic.twitter.com/RJPLRr0RW3
— James Seyffart (@JSeyff) August 10, 2023
The US Securities and Exchange Commission (SEC) is currently evaluating 15 Ethereum futures ETF applications. This includes 13 brand-new proposals and two notable conversions by Bitwise and Valkyrie. Interestingly, both these companies seem to be sidestepping the conventional waiting line, targeting the highly sought-after first-mover advantage via these conversions. And as time progresses, these ETFs seem to be getting closer to a thumbs up from the SEC.
Elaborating on this shift, Seyffart mentioned,
“Historically, after the introduction of Ethereum futures ETF filings, it took a mere few days before the SEC mandated withdrawals. However, with 13 days already passed since Volatility Shares commenced the Ethereum ETF wave, the chances of actual launches are looking brighter.”
Eric Balchunas, another senior ETF analyst from Bloomberg, also contributed his perspective. He observed the recurring strategy, commenting,
“Bitwise is essentially adopting the Valkyrie approach, which itself was a modified method to expedite the launch process. It’s akin to a Cannonball Run.”
Balchunas also provided a historical backdrop. He pointed out that usually, the SEC advises Ethereum Futures ETF filers to retract their proposals within 5-6 days of the initial submission. Yet, the current scenario is different.
“We’re on day 13 without any pullbacks, indicating a promising sign. Based on the current trajectory, it’s plausible we might see these ETFs hit the market by mid-October.”
At the forefront of the SEC’s decision queue stands Valkyrie with its Bitcoin & Ether Strategy ETF (BTF), awaiting a resolution by Oct. 3. Bitwise follows suit, hoping for a verdict by October 9 regarding its conversion application. Meanwhile, Volatility Shares’ Ether Strategy ETF (ETHU) anticipates its fate by Oct. 11.
The accelerated pace of events in the Ethereum ETF sector underscores the evolving nature of the market. The focus now remains on identifying which entity will pioneer the Ethereum futures ETF in the US, potentially ushering in a positive shift in the market. At the moment, Ether’s (ETH) trading activity oscillates between $1,822 and $1,882.
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