Bitwise Bitcoin and Ethereum ETF Approved for Trading on NYSE Arca
New York, NY – October 26, 2023 – In a significant development for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has expedited the approval for the Bitwise Bitcoin and Ethereum Exchange-Traded Fund (ETF). This move allows the ETF to be listed and traded on NYSE Arca, marking a notable step in the integration of digital assets within mainstream financial markets.
A Hybrid Approach to Crypto Investment
Bitwise’s hybrid ETF will provide investors with direct exposure to both Bitcoin (BTC) and Ethereum (ETH) within a single fund. Notably, the fund will utilize Coinbase’s custody services to manage and oversee its holdings, ensuring a robust framework for security and compliance. According to the latest filings, the asset allocation of the fund will consist of approximately 83% Bitcoin and 17% Ethereum. This distribution is determined based on market capitalization, which is calculated through the pricing benchmarks multiplied by each asset’s circulating supply.
The fund’s net asset value will be calculated daily at 4:00 p.m. ET, using price benchmarks that aggregate real-time trading data from major exchanges, making it a dynamic offering for investors looking to engage with the digital asset space.
Industry Insight and Broader Implications
Commenting on the SEC’s approval, Bloomberg’s senior ETF analyst, Eric Balchunas, expressed optimism on social media platform X, interpreting this development as a potential indication that the new SEC leadership might expedite future approvals for similar financial products. This sentiment reflects a broader trend observed in recent months, wherein the SEC has demonstrated a willingness to clear various crypto investment products. The December listings of Hashdex and Franklin Templeton ETFs by Nasdaq and Cboe BZX further illustrate this emerging trend of acceptance toward digital assets, coinciding with a more industry-friendly regulatory environment.
Expanding Product Offerings
Bitwise has been actively broadening its range of crypto-based investment products. Alongside its newly approved Bitcoin and Ethereum ETFs, the firm recently filed for a Dogecoin (DOGE) ETF, signaling a growing institutional interest in meme-based tokens. Furthermore, Bitwise has plans to introduce an XRP ETF by October 2024, followed by a Solana (SOL) ETF in November, effectively diversifying its offerings beyond the two largest cryptocurrencies by market capitalization.
In a tweet on Thursday, the firm noted a shifting market cycle influenced by favorable regulatory developments, stating, “With Washington embracing digital assets like never before, the impact of this shift could extend the current bull run into 2026 and beyond.”
Remaining Steps Before Trading
Although the approval for the Bitwise ETF has cleared the 19b-4 rule, trading will not commence until the SEC also approves its Form S-1 registration. This crucial review process will assess the fund’s adherence to essential disclosure and investor protection requirements.
As of the latest data from CoinGecko, Bitcoin is trading slightly down at $104,331, reflecting a 0.2% decrease, while Ethereum has experienced a modest increase of 1.2%, currently priced at $3,234.15.
Conclusion
The approval of the Bitwise Bitcoin and Ethereum ETF is a significant milestone in the evolution of cryptocurrency investment products within regulated financial markets. As regulatory landscapes evolve, both investors and firms in the digital asset space are keenly watching for further developments that could shape the future of crypto traditions and their integration into mainstream investment portfolios.
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