Bitwise, one of the top cryptocurrency asset managers, has filed an S-1 form with the U.S. Securities and Exchange Commission in order to launch a spot-based Ethereum ETF. 

If approved, the Bitwise Ethereum ETF will be listed on the NYSE Arca. The proposed product intends to provide direct exposure to the value of the largest altcoin held by the Trust with Coinbase Custody. 

After submitting its new spot Ethereum ETF filing, Bitwise also published its correlation analysis to urge the SEC to approve the product: 

"We believe the results show strong correlation between the ETH spot market and CME ETH futures market, at a level substantially similar to the findings of the SEC’s analysis in the spot bitcoin ETF approval order," the asset manager said.  

Last October, the investment manager launched an ETF tied to Ethereum futures. 

Earlier this year, multiple major players, including BlackRock and Fidelity, filed for spot Ethereum ETFs. This came after the SEC greenlit a slew of Bitcoin ETFs in early January to much fanfare.  

As reported by U.Today, the SEC appears to be determined to classify the second-largest cryptocurrency as a security.  

This might complicate the approval of multiple spot ETF applications. However, BlackRock CEO Larry Fink believes that it would still be possible to launch a spot-based ETF even if Ethereum were to be labeled as a security. 

For now, the possibility of a spot Ethereum ETF being approved this May appears to be very low, according to various experts of the likes of Nate Geraci. 

The approval odds have allegedly plummeted due to growing political backlash against cryptocurrency ETFs, with multiple lawmakers urging the SEC not to approve more similar products.