SEC may postpone Ethereum ETF approval to December

The SEC 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 rapid 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 that their pace of growth is unprecedented compared to historical ETF launches.

“These (spot BTC ETFs) are the fastest growing ETFs ever, by a wide margin,” Hougan stressed.

“ I believe the fastest growing ETF before this was QQQM, which went from zero to $5 billion in a year. 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 an Ethereum ETF could be delayed.

This stems from the cautious approach of regulators due to the growing interest in investing in Crypto assets and the complex market dynamics .

But Gougan also expressed confidence that the Ethereum ETF will eventually be launched. However, he expects that delaying it until later this year may give traditional finance more time to understand and accept Crypto assets, thereby benefiting the market.

“We think this is the natural path that crypto investors have been following for 15 years,” Hougan explained. “They started with BTC and they’ve been wanting to get exposure to other things.”

“I think Ethereum will be very attractive. And an Ethereum ETF launched in December will be more successful than one launched 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 more steady and informed entry into the Ethereum market by both institutional and retail investors .

Hougan’s insights reveal a significant shift in people’s 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 that would further legitimize and promote investment in Ethereum and beyond.