By: Eva Baxter
Bitwise has gained attention in the cryptocurrency sphere as it emerges as a potential frontrunner among Bitcoin spot ETF issuers. The investment management company has disclosed, in its updated S-1 form, a planned $200m seed investment for the launch of its spot Bitcoin (BTC) exchange-traded fund (ETF). This move challenges BlackRock's recently announced $10m seed fund for its own spot Bitcoin ETF. However, unlike BlackRock, Bitwise has not named an authorized participant for its ETF.
This significant variance in the initial seed fund between the two potential ETF issuers could influence early-stage competition, favoring Bitwise. Balancing out the playing field, the SEC is set to announce the first approval or rejection of these ETFs in early January 2024. Furthermore, Bitwise recently expressed its expectation that their spot Bitcoin ETF will be the most successful financial product in history - a strong statement backed by the substantial $200m seed fund invested.
Bitwise is also planning to launch a spot Ethereum ETF in the upcoming months. Other fund managers, such as Ark Invest and Valkyrie Investments, are also in the race, having updated their applications and named the authorized agents in anticipation of approval. It is worth noting that the approval of these ETFs could serve as a catalyst for further growth and adoption of the cryptocurrency market.
All these factors make the SEC's decision on the much-anticipated spot Bitcoin and Ethereum ETFs a significant event for the cryptocurrency market.
© BlockBriefly. All Rights Reserved.