Bitwise modified the registration documents for its Ethereum exchange-traded fund (ETF) on Tuesday. The asset manager is currently awaiting SEC approval to launch and trade the ETF publicly.
In the United States, companies are required to file an S-1 form with the SEC before offering new investment products to the public.
According to the updated filing, Bitwise disclosed a $2.5 million seed investment intended to initiate the fund. This capital will be used to acquire Ethereum assets prior to the ETF’s debut on the stock market.
Pantera Capital, a crypto venture capital firm, expressed interest in purchasing up to $100 million worth of shares in Bitwise’s spot Ethereum ETF. However, Bitwise clarified that these indications of interest are not binding commitments, leaving the potential for these investors to adjust their purchase amounts or decide against buying shares altogether.
Uncertain Launch Timeline for Bitwise ETH ETF
In recent developments, the SEC approved several Ethereum ETFs last month, though each issuer must secure specific product approval. Bitwise has now become the first to update its S-1 filing following initial SEC feedback. According to Bloomberg’s ETF analyst James Seyffart, it remains uncertain whether further revisions will be necessary before the ETF can officially launch.
“There’s no definitive timeline for launch based on this filing,” Seyffart commented. “It could proceed without additional updates or require adjustments. Ultimately, final SEC approval will dictate the launch timing,” he added.
Seyffart speculates that a launch before July 4 could be feasible.
Additionally, last month, Fidelity adjusted its application for a spot Ethereum ETF filed with the SEC. The update clarified that the ETF will not involve Ethereum token staking.
Politics Behind SEC’s U-turn on Spot Ether ETFs
The SEC has reportedly requested revisions to ETF issuer applications following potential political pressure, indicating a possible shift in its approach to spot Ether ETFs.
James Seyffart previously suggested to Cryptonews that actions by the Biden administration and feedback from the crypto community likely influenced the SEC’s change in stance.
“We believe this decision was entirely political. It appears to be a complete reversal by the SEC,” Seyffart remarked.