Originally published on: December 11, 2024
The Securities and Exchange Commission (SEC) is moving forward with NYSE Arca’s request to list a Bitwise exchange-traded fund (ETF) that will hold both Bitcoin (BTC) and Ethereum (ETH). This development was revealed in a recent filing dated December 10.
Bitwise and NYSE submitted the necessary filings on November 26, prompting the SEC to progress the application by seeking input from the industry. The Bitwise Bitcoin and Ethereum ETF is set to be a spot cryptocurrency index fund that includes both BTC and ETH. The main goal of this ETF is to offer investors a well-balanced exposure to the two largest crypto assets in a convenient and accessible format.
According to industry experts, the next big focus for issuers after listing funds holding BTC and ETH earlier in the year will be crypto index ETFs. Katalin Tischhauser, Head of Investment Research at Sygnum, explained that index ETFs are an efficient option for investors, much like how people invest in the S&P 500 through an ETF. This trend is now extending to the crypto market.
In addition to the Bitwise Bitcoin and Ethereum ETF, NYSE also filed to list another Bitwise index ETF known as Bitwise 10 Crypto Index Fund, which will offer exposure to a wider range of crypto assets. Furthermore, NYSE Arca has requested approval from the SEC to list the Grayscale Digital Large Cap Fund, a proposed Grayscale index ETF.
As the crypto industry continues to evolve, more asset managers like Hashdex and Franklin Templeton are also joining the competition by proposing their own crypto index funds. With a flurry of offerings in the pipeline, the landscape of crypto ETFs is poised for significant growth.
Looking ahead, the upcoming presidential term of Donald Trump promises to bring further changes to the regulatory environment for cryptocurrencies. With SEC Chair Gary Gensler set to depart on Trump’s inauguration day, the industry is bracing for new leadership and potentially different regulatory approaches.
As the crypto market matures and expands, the possibilities for ETFs offering staking and other innovative features are multiplying. Stay tuned for more updates on the evolving world of crypto finance and investment.
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