Bitwise Chief Compliance Officer (CCO) Katherine Dowling recently expressed optimism regarding the approval of spot Ethereum ETFs, stating that they are “close to the finish line.” She highlighted the positive reception from the SEC, mentioning that discussions about potential products have been well-received.
In a recent interview with Bloomberg, Dowling mentioned that the SEC and ETF issuers have been able to address issues more efficiently in each S-1 amendment, indicating that a launch is imminent. While SEC Chair Gary Gensler had previously suggested that registration statements would be fully approved over the summer, Dowling acknowledged that the timeline remains open-ended. She humorously mentioned the varying definitions of summer, implying a level of uncertainty surrounding the approval process.
Dowling emphasized Bitwise’s unique positioning as a “crypto specialist” with years of dedicated focus on the sector, distinguishing the company from industry giants like BlackRock and Fidelity. Bitwise’s most recent S-1 amendment was filed on July 3, ahead of other applicants who filed by the July 8 deadline. As the process moves forward, details such as sponsor’s fees will need to be added in future filings to complete the application.
Apart from spot Ethereum ETFs, Bitwise has also explored the possibility of introducing new products in the market. Dowling mentioned positive discussions with the SEC regarding these potential offerings, highlighting the regulatory agency’s openness to innovation in the crypto space. However, she acknowledged that certain products may require approval under a new SEC chair, potentially prolonging the approval timeline.
Dowling pointed out that the historical context of previous product approvals and the evolving nature of future markets could present challenges in bringing new products to market. While she did not specify the products under consideration, Dowling hinted at potential hurdles in obtaining approval for innovative ETF products. Currently, other pending spot crypto ETFs include VanEck and 21Shares’ spot Solana (SOL) ETFs, with Bitwise yet to apply for a similar product at this time.
By closely monitoring regulatory developments and staying proactive in their approach, Bitwise remains positioned to capitalize on emerging opportunities in the crypto ETF space.