Cryptocurrency asset management firm Bitwise is exploring the possibility of launching an exchange-traded product (ETP) that would cover various layer 2 networks and applications of Ethereum.

The Chief Investment Officer of Bitwise, Matt Hougan, hinted at this potential move in a recent interview with Forbes.

Bitwise's recent filing with the United States Securities and Exchange Commission (SEC) for a spot Ether exchange-traded fund (ETF) was a significant step in the crypto market.

Bitwise's Interested Perspective

Hougan expressed a mix of excitement and disappointment about Bitwise not having such a product, recognizing its potential value for investors. He showed confidence in the ever-changing Ethereum ecosystem while admitting uncertainty about the dominant layer 2 solutions and applications in the future.

Stating that the best approach would be to own all of them, Hougan emphasized the appeal of such a product.

Bitwise CIO's Perspective

Underlining the importance of Ethereum's Denou upgrade, the Bitwise executive deemed it a game-changer, undervalued by the market. Despite this, concerns were raised about the market's preparedness for a spot Ethereum ETF, urging regulators to hold off on approvals until December.

Although Bitwise commenced the process for a spot Ether ETF, it faces competition from firms like BlackRock, VanEck, and Fidelity also seeking SEC approval.

Considerations for Spot ETH ETFs

While there were expectations for mass approvals of spot Ether ETFs in May, some analysts have adjusted their outlook due to perceived SEC hesitancy with applicants.

Contrasting this view, Craig Salm, Grayscale’s chief legal officer, argued that the challenges faced by spot Ether ETFs have largely been addressed following the precedent set by spot Bitcoin ETFs.

Bitwise's venture into the cryptocurrency ETF market has been noteworthy, with its Bitwise Bitcoin ETF (BITB) experiencing substantial inflows, positioning itself among top issuers alongside BlackRock and Fidelity.

This article originally appeared on Latest News and Insights on Blockchain, Cryptocurrency, and Investing.