Ethereum consolidates above $3,500 as Bitwise CIO says ETF delay would be positive

• Bitcoin ETFs may overwhelm Ethereum ETFs if they are approved in May, Bitwise CIO Matt Hougan says.
• Ethereum ETF delay may not imply rejection from the SEC.
• Ethereum may see a decline if Bitcoin fails to recover

Ethereum’s (ETH) prices loses some ground on Monday, paring back some of the gains seen during the weekend, as traders continue to speculate over the possibility of an approval of the spot Ether ETF in May. 

Bitwise Asset Management’s Chief Investment Officer Matt Hougan said in a Forbes interview published on Sunday that a delay to December would make the launch more successful. This comes at a time when other key market players have provided different views that lean towards the idea that the SEC will likely delay the approval of the seven spot Ethereum ETF filings.

Daily digest market movers: Latest Ethereum ETF applicant wants 12-month delay

Matt Hougan disclosed to Forbes that the recent demand for Ethereum ETFs is a “natural pathway that crypto investors have followed for 15 years.” He mentioned how investors usually follow a pattern of wanting exposure to Bitcoin and, eventually, other crypto assets. This follows the significant growth of Bitcoin ETFs since their launch on January 11, as they have attracted more than $10 billion in less than three months, making them the fastest-growing ETFs in history.

• While Hougan believes an Ethereum ETF will also attract investors, he suggested a 12-month delay will make it more successful. “I think the Ethereum ETFs will be more successful if they launch in 12 months than (…) in May,” said Hougan.
• He further stated that traditional finance investors are still trying to master Bitcoin and the crypto market. “I know that sounds goofy, but I think TradFi is still digesting Bitcoin and if you give TradFi time to get comfortable with Bitcoin and crypto, they will be ready for the next thing,” Hougan emphasized.
• Bitwise filed for a spot in Ethereum ETF on March 28, joining other giant institutions like Fidelity, BlackRock, VanEck, Grayscale, Invesco Galaxy, and Franklin Templeton. The SEC has refused to engage with these applicants and delayed any spot Ethereum filings. VanEck’s filing is due for a decision on May 23 as a final deadline.
• As a result, many analysts, including Bloomberg’s Eric Balchunas and James Seyffart, have lowered their odds of spot ETH approval. Still, the chief legal officers of Coinbase and Grayscale are optimistic of a May approval, citing Ethereum’s commodity status.
• Amid the delay, the SEC has also issued subpoenas to three firms that transacted with the Ethereum Foundation, according to a Fortune report, in a bid to classify Ethereum as a security. While many have expressed concerns that such classification would hurt the chances of an Ethereum ETF, BlackRock CEO Larry Fink said in an interview with Fox Business that a spot ETH ETF can still be possible even if the underlying asset is designated a security.

Technical Analysis: ETH may crash if Bitcoin fails to recover

ETH’s price recently tagged the $3,574 mid-point of the $3,054 to $4,095 range it set up during its 25% descent between March 11 and 20. While the move may be attractive to trade, “a breakout above $3,574 and $3,658 is likely to be short-lived,” said FXStreet Analyst Akash Girimath.

Read more: Ethereum’s short-term range forecasts $4,000 but with a warning for eager ETH bulls

ETH/USDT 4-hour chart

Akash further emphasized that if Bitcoin fails to recover after its short-term liquidity collection, ETH may crash to the $3,000 psychological level.