Drawing inspiration from Valkyrie Funds’ recent moves, Bitwise Invest has positioned itself for a strategic transition. The company has submitted a revised prospectus detailing its intentions to convert its well-known Bitcoin futures ETF (BITC) into the innovative “Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF,” heralding a new phase in its strategy.
The financial world is abuzz with anticipation as this transition will take effect on October 9, 2023. Analysts and enthusiasts are eyeing this maneuver as a deft tactical play in the ongoing race to introduce the first Ethereum Futures ETF in the United States.
James Seyffart, an astute ETF analyst at Bloomberg, weighed in on this significant development. Seyffart dubbed it a potential “3D chess move” if successful, drawing parallels with Valkyrie’s strategic decision-making. This nod from a seasoned analyst underscores the gravity of Bitwise’s strategic pivot.
Bitwise And Valkyrie’s Innovative ETF Conversion Strategies
Currently, the US Securities and Exchange Commission (SEC) is contending with a roster of 15 Ethereum futures ETF applications, all awaiting a crucial decision. Within this lineup, 13 applications seek initial approval, while two applications seek conversions of both Bitwise and Valkyrie.
The common thread is the endeavor to circumvent the traditional application queue, as both companies vie for the coveted position of first-mover advantage through their innovative conversion strategies. With each passing day, the prospects of these ETFs receiving the regulatory nod seem to ascend. Seyffart expanded upon the evolving landscape, providing insights into the dynamic unfolding within the ETF domain.
According to Eric Balchunas, a seasoned senior ETF analyst at Bloomberg,
“Bitwise is pulling a Valkyrie who pulled an MJ (using name/strategy change to bypass the initial filing process and in this case get out earlier). Cannonball Run in effect.”
On the path of SEC’s decision-making timeline, Valkyrie takes the front seat, awaiting a verdict on its Bitcoin & Ether Strategy ETF (BTF) by October 3. In hot pursuit is Bitwise, which has successfully advanced to the runner-up slot with its conversion application, primed for an SEC decision by October 9. Following closely, Volatility Shares’ Ether Strategy ETF (ETHU) is lined up for a decision on October 11.
The rapid and dynamic developments within the ETF arena, particularly around Ethereum, signify a market maturing and attracting ever-growing institutional interest in the second-largest cryptocurrency by market capitalization. As the competition intensifies, the global crypto community remains riveted to the unfolding events, eagerly awaiting which pioneering firm will successfully launch the inaugural Ethereum futures ETF in the United States. Such a milestone could reverberate as a bullish signal across the broader cryptocurrency landscape.
Related Reading:| Valkyrie Bitcoin Futures ETF to be launched this week: Analysts