In a significant move echoing recent actions by Valkyrie Funds, Bitwise Invest has set the stage for a major shift in the world of cryptocurrencies. The company has filed an updated prospectus to transform its Bitcoin futures ETF (BITC) into the “Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF.” Expected to come into effect on October 9, 2023, this strategic shift is causing a stir in the cryptocurrency community and sparking a race to establish the first Ethereum Futures ETF in the United States.

This strategic move by Bitwise follows the footsteps of Valkyrie Funds, which recently employed a similar maneuver. Both Bitwise and Valkyrie are taking a calculated step by aiming to sidestep the traditional waiting queue for ETF approvals. By converting their existing funds, they are positioning themselves for a potential early mover advantage in the emerging Ethereum Futures ETF market.

With the United States Securities and Exchange Commission (SEC) currently evaluating 15 different Ethereum futures ETF proposals, the chances of these ETFs gaining regulatory approval appear to be on the rise. Among these applications are both new proposals and conversions, such as those by Bitwise and Valkyrie. As time progresses, the growing likelihood of approval is capturing the attention of experts and enthusiasts alike.

James Seyffart, an esteemed analyst at Bloomberg specializing in ETFs, noted this evolving landscape, comparing it to “uncharted territory.” Previously, the SEC had typically prompted withdrawals of Ether Futures ETF filings within about a week of the first submission. However, in the current scenario, no withdrawals have been initiated even after 13 days, indicating positive signs for potential launches in mid-October.

Eric Balchunas, a senior ETF analyst at Bloomberg, provided insights into the situation by likening Bitwise’s strategic move to a similar action taken by Valkyrie. He remarked that Bitwise is effectively “pulling a Valkyrie,” employing a change in name and strategy to potentially expedite the approval process and launch ahead of the competition. These developments highlight a market in evolution, with increasing institutional interest in Ethereum and the broader cryptocurrency landscape.

As of now, Valkyrie leads the pack, with its Bitcoin & Ether Strategy ETF (BTF) anticipated to receive a verdict by October 3. Close on its heels is Bitwise, whose conversion application is awaiting an SEC decision by October 9. Following suit, Volatility Shares’ Ether Strategy ETF (ETHU) is also on the SEC’s radar, with a decision date set for October 11.

The rapidly evolving ETF landscape, particularly centered around Ethereum, is a testament to the maturation of the cryptocurrency market and the rising institutional enthusiasm for the second-largest cryptocurrency by market cap. The competitive race to launch the first Ethereum futures ETF in the US will undoubtedly be closely monitored by cryptocurrency enthusiasts, as its outcome could potentially have ripple effects across the broader market.

As we speak, Ether (ETH) remains within a tight trading range, fluctuating between $1,822 and $1,882. All eyes are now on Bitwise, Valkyrie, and the SEC as the countdown begins towards a potential milestone in the cryptocurrency space. The developments underline the ever-evolving nature of the industry, where strategic moves are reshaping the landscape and setting the stage for the next phase of growth.