Katherine Dowling of Bitwise discusses the potential of spot Ethereum exchange-traded funds (ETFs)


As they wait for likely clearance next week, people in the US who want to create a spot Ethereum (ETH) exchange-traded fund (ETF) have changed the documents they sent to the U.S. Securities and Exchange Commission (SEC).

On July 9, Katherine Dowling, the General Counsel and Chief Compliance Officer at Bitwise Asset Management, featured on Bloomberg TV to discuss the firm’s spot Ethereum ETF application and the broader landscape for crypto products. Dowling provided a comprehensive analysis of the status of Bitwise’s application, the potential market impact, and the changing regulatory environment during an interview with hosts Sonali Basak and Eric Balchunas.

Dowling initiated the discussion by emphasizing the ongoing dialogue with the SEC. She disclosed that Bitwise has had ongoing discussions with the Securities and Exchange Commission regarding the potential for new products. Dowling recognized the historical obstacles associated with introducing such products to the market, particularly the absence of futures trading in certain potential offerings. She emphasized that the communication with the SEC has been positive and welcoming, despite these obstacles.

Dowling addressed the interest from retail and institutional investors, stating that Ethereum may be a more complex sell than Bitcoin, but it is not inherently more difficult to sell. She further elaborated that Ethereum’s market structure is distinctive, and while it is not as readily explicable as Bitcoin’s “digital gold” narrative, it still has substantial appeal. Dowling stated that Ethereum spot ETFs could be introduced in the United States in the near future, with SEC Chair Gary Gensler suggesting a summer launch.

Dowling emphasized Bitwise’s status as a research institution when queried about the marketing of Ethereum to potential investors. She underscored the significance of deconstructing Ethereum’s technological innovations and business applications, drawing comparisons to the internet’s evolution. Dowling proposed that this method would render Ethereum more accessible and enticing to a broader audience. She emphasized that these products are not merely currencies, but rather technological advancements that simplify business operations on the blockchain.

Dowling addressed Bitwise’s approach to distinguish itself in a competitive market, in light of the forthcoming introduction of multiple spot Ethereum ETFs. She asserted that Bitwise is a crypto asset specialist with extensive experience in trading and operating exclusively within the crypto sector. Dowling underscored the significance of operational mechanisms that operate in the background, thereby guaranteeing investors superior outcomes and smaller trading spreads. She contended that Bitwise’s specialization separates it from other prominent brands that are entering the market.

Although Dowling was unable to provide specifics regarding future products, she suggested that Bitwise would take a proactive approach to addressing investor requirements. In order to remain informed about market trends and to comprehend the needs of their clients, Bitwise is perpetually engaging in discussions with institutional investors, she stated. Dowling guaranteed that Bitwise is completely dedicated to the creation of products that meet the diversification requirements of investors.

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