Key Takeaways
- The SEC approved NYSE Arca’s proposal to list a Bitwise ETF offering exposure to Bitcoin and Ethereum.
- The ETF’s approval highlights the SEC’s increasing familiarity with crypto-backed investment vehicles.
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The SEC has granted accelerated approval for NYSE Arca to list and trade shares of the Bitwise Bitcoin and Ethereum ETF, a hybrid investment product offering exposure to both leading digital assets.
The regulator’s decision to expedite the listing and trading of the securities was due to similarities with previously approved spot Bitcoin and Ethereum ETFs, according to a Jan. 30 filing. This reflects the SEC’s growing familiarity with crypto-backed investment vehicles.
The decision is yet another step forward in the increasing acceptance of crypto-related investment products and offers investors a new way to gain exposure to the two largest crypto assets.
“News but expected,” tweeted Bloomberg ETF analyst Eric Balchunas following the SEC’s approval of the Bitwise Bitcoin and Ethereum ETF. He expressed hope that the faster-than-usual process signals a more efficient SEC approach to future ETF applications, but cautioned against drawing broad conclusions from a single case.
“…they approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster but no way to know really. Litecoin on deck, know more soon,” Balchunas stated.
The fund will hold Bitcoin, Ethereum, and cash, with crypto asset allocations weighted according to their market capitalizations. Its net asset value will be calculated daily using the CME CF Bitcoin – New York Variant for Bitcoin and the CME CF Ether – Dollar Reference Rate – New York Variant for Ethereum pricing benchmarks.
Investors can purchase or redeem shares in Creation Units, which will initially consist of at least 10,000 shares. The ETF aims to track the combined value of both crypto assets, minus operating expenses.
Last month, the SEC authorized the first dual Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, with provisions for future inclusion of additional crypto assets.
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