Originally published on: December 11, 2024
The Securities and Exchange Commission (SEC) is making progress in considering NYSE Arca’s proposal to list a Bitwise exchange-traded fund (ETF) that will hold both Bitcoin and Ethereum. This move follows the submission of filings by Bitwise and NYSE on November 26, aiming to offer investors a unique opportunity in the cryptocurrency market.
The Bitwise Bitcoin and Ethereum ETF, if approved, will be a spot cryptocurrency index fund that includes BTC and ETH. This innovative investment opportunity is designed to provide investors with balanced exposure to the two largest crypto assets worldwide in a convenient format, as highlighted in a recent post by the asset manager.
Industry experts suggest that crypto index ETFs are gaining momentum as the next big focus for issuers, following the listing of funds holding BTC and ETH earlier in the year. Katalin Tischhauser, head of investment research at crypto bank Sygnum, expressed the view that index ETFs are the logical next step in the evolution of crypto investments, similar to traditional equity index funds like the S&P 500.
In addition to the Bitwise Bitcoin and Ethereum ETF, NYSE has also filed for another Bitwise index ETF known as the Bitwise 10 Crypto Index Fund. This fund is expected to offer a more diverse selection of crypto assets, expanding investment options in the digital asset space.
The regulatory landscape for cryptocurrencies is also evolving, with significant implications for the industry. As US President-elect Donald Trump prepares to take office, there is anticipation of a more crypto-friendly approach to regulation under his administration. Gary Gensler, the current SEC Chair known for his strict stance on crypto regulation, is set to depart when Trump assumes office. This transition could signal a shift in regulatory priorities and open up new opportunities for issuers looking to launch various crypto funds, including index ETFs and products offering staking services.
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