After surpassing the $71,000 mark, Bitcoin has experienced a pullback from its recent peak. This fluctuation comes as the majority of alternative cryptocurrencies secure significant, double-digit gains. Concurrently, a proposal for a new Ethereum-based Exchange Traded Fund (ETF) has been submitted, despite Bloomberg analysts forecasting a low probability of approval for such ETFs. Nevertheless, companies continue to explore the potential in Ether, indicating a persistent interest in the asset.
Ethereum ETF Application by Bitwise
Bitwise has recently lodged an application for an ETF featuring Ethereum, aiming for it to be listed on the New York Stock Exchange (NYSE). The proposed ETF is designed to offer an indefinite number of shares, a structure akin to previous Bitcoin ETF applications, under the Securities Act of 1933. This application also highlights the inherent risks of the underlying asset, which include dependencies on internet stability and the possibility of network hard forks.
SEC Decision Dates on Crypto ETFs Approaching
The sector recalls when BlackRock’s similar cautionary statements about Bitcoin led to exaggerated claims about the potential to disrupt Bitcoin’s existence. Today, there may be some anticipation or amusement in seeing how entities could overstate the impact of Bitwise’s application in relation to internet functionality. The SEC is poised to make a final decision on the joint Ark and 21Shares ETF application on May 23rd. Additionally, verdicts for other prominent applicants like BlackRock and Fidelity are expected to be announced in July, marking significant dates for the cryptocurrency investment community.