Bitwise, a leading cryptocurrency investment firm, has updated its proposal for an Ethereum exchange-traded fund (ETF) following feedback from the U.S. Securities and Exchange Commission (SEC). The updated proposal outlines a $2.5 million seed investment by an affiliate company and interest from Pantera Capital in purchasing up to $100 million in shares.

The amended proposal details the initial funding steps for the Bitwise Ethereum ETF. The company's affiliate, Bitwise Investment Manager, LLC, will purchase $2.5 million worth of shares at $25 per share, totaling 100,000 shares. Additionally, Pantera Capital Management LP has expressed interest in acquiring up to $100 million of the shares, which could indicate significant demand for cryptocurrency-based ETFs.

The path to launching the Ethereum ETF involves meeting regulatory requirements. Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs, marking a step forward in the approval process. However, these issuers, including Bitwise, must still have their S-1 statements declared effective before trading can begin.

Ethereum Price Fluctuates Amid ETF Speculation

The Ethereum price has experienced fluctuations, recently decreasing by 1.53% to $3,471. Despite this dip, the market cap saw a slight increase of 0.28%, suggesting mixed investor sentiment. Additionally, a significant rise in trading volume by 16.68% indicates heightened market activity, which could hint at upcoming trends in investor behavior, especially in anticipation of new investment products like the Ethereum ETF.

Analysts, including Bloomberg's James Seyffart, have weighed in on the situation, suggesting that while the exact launch date of these ETF products remains uncertain, there is optimism that approvals could be granted before July 4.