By
Anisha Pandey
June 24th, 2024
In a revised S-1 form filed with the SEC, Bitwise revealed new details about its Ethereum ETF, including a $2.5 million seed investment.
Bitwise Asset Management made a major update in its efforts to debut a spot Ethereum (ETH price data) exchange-traded fund (ETF). In a revised S-1 registration form filed with the U.S. Securities and Exchange Commission (SEC), the firm revealed new details about its Ethereum ETF, including a $2.5 million seed investment.
As per the newly-updated S-1 form, Bitwise Investment Manager, LLC, an affiliate of the sponsor, would purchase the initial baskets of shares for $2.5 million. The investment will be at a per-share price of $25, translating to 100,000 shares, commonly referred to as the “Seed Baskets.”
Pantera’s Interest in Bitwise
Moreover, Bitwise disclosed that prominent hedge fund, Pantera Capital Management LP, has also shown interest in buying up to $100 million worth of shares but cautioned that there is no binding commitment as Pantera did not file a 13F stating they own the shares yet. It stated:
“Because indications of interest are not binding agreements or commitments to purchase, these potential purchasers could determine to purchase more, fewer or no Shares.”
Bitwise’s latest update comes on the heels of the SEC’s approval of 19b-4 forms for eight Ethereum ETFs last month. Despite this progress, issuers still need their S-1 filings to get approved before trading can officially start.
Recently, the regulatory agency has provided feedback on the S-1 forms submitted by various ETF issuers, with a deadline set for June 21 to address the comments. This process indicates a step closer to potential approval and launch.
Potential Launch Date
As the SEC’s final decision looms, the crypto community watches closely, guessing the potential launch date. Popular ETF analyst at Bloomberg, James Seyffart, recently noted the uncertainty surrounding the launch timeline of these ETFs. In a post on X, Seyffart stated, “No way to know when these things will launch based off of this filing. Might not require any additional updates, might require tweaks. But they need final SEC approval.”
Notably, he and another renowned ETF analyst, Eric Balchunas, had previously predicted that the spot Ethereum ETF products might launch before July 2. However, this depends entirely on the SEC’s decision.
The anticipation surrounding these ETFs is reminiscent of the market reaction earlier this year when the SEC approved Bitcoin-based ETFs on January 10. This regulatory nod propelled Bitcoin’s price to an all-time high in March. Market analysts and investors are expecting a similar uptrend for Ethereum after the potential approval of its associated ETFs.
The anticipated launch of the Ethereum ETFs marks a significant development for Ethereum. It would offer a regulated avenue for institutional and retail investors to gain exposure to the second-largest cryptocurrency by market capitalization.
Meanwhile, Ether (ETH) is currently trading at around $3,554, having doubled in value over the past year, according to data by CoinMarketCap.