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SEC Approves Bitwise Spot Bitcoin and Ethereum ETF for Trading

  • The SEC approved the Bitwise Bitcoin and Ethereum ETF, allowing market-cap-weighted exposure to both assets.
  • The ETF will be listed on NYSE Arca, providing institutional investors with a regulated way to invest in BTC and ETH.
  • Grayscale and CoinShares have filed for ETFs, expanding cryptocurrency investment options in the U.S.

The U.S. Securities and Exchange Commission (SEC) has approved the Bitwise Spot Bitcoin and Ethereum ETF. It would allow investors to gain exposure to both BTC and ETH in a single regulated financial product.

The ETF will be listed on the New York Stock Exchange (NYSE). It’ll weigh its holdings by market capitalization and provides an alternative to direct cryptocurrency ownership.

Bitwise ETF Gains Regulatory Approval

The Bitwise bitcoin and ethereum has been approved after NYSE Arca submitted the 19b-4 form back in November 2024. This decision comes as asset managers rush to introduce new crypto-related ETFs. There are expectations of a more favorable regulatory environment under President Donald Trump’s administration.

Bitwise had previously proposed the ETF through an S-1 filing document on November 26, 2024. Shortly after securing approval for Bitcoin ETF options on October 21,2024.

Structure and Function of the ETF

The Bitwise ETF is designed to track the market value of Bitcoin and Ethereum. In order to allocate assets based on relative market capitalization.

All the asset classes of the ETF will be invested in Bitcoin, Ethereum, and cash. This’ll enable investors to get direct access to these products without having to go through the complexities of wallet and exchange. The ETF will consist of shares. The creation and redemption of this particular ETF will be in minimum of 10,000 shares. This could favor institutional investors.

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Growing Institutional Interest in Crypto ETFs

Now, the decision comes after several other crypto ETF approvals by the SEC. These include the Franklin Templeton and Hashdex Crypto Index ETFs. Hashdex’s ETF gives direct exposure to the whole basket of crypto currencies. Franklin Templeton’s is yet to be launched with its product expected early 2025.

The approval of spot Bitcoin and Ethereum ETFs demonstrates the demand for such products. They are currently being regulated by institutions. Applications for registration have also been filling up recently due to less restrictions expected under the new administration.

In other news, Grayscale has now submitted a registration with the NYSE to promote a Spot XRP ETF. Grayscale Investments has filed an application by 19b-4 form to the U.S Securities and Exchange Commission (SEC) to transform Grayscale XRP Trust into an ETF.

CoinShares has also listed with the SEC for spot ETFs on Litecoin and XRP. Making it evidence of Asset Managers looking forward to enhancing the utilization of crypto products in the United States.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Olivia Stephanie
Olivia Stephanie
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.