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.
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.