The US Securities and Exchange Commission (SEC) has recently granted approval for a specific filing related to a Bitcoin-Ethereum exchange-traded fund (ETF) offered by Bitwise. This approval marks a significant step forward for NYSE Arca as it moves closer to the eventual listing and trading of shares associated with this fund.
According to the SEC’s announcement, the proposed plan adheres to the requirements set forth in the Exchange Act, which is designed to ensure that trading rules prevent fraudulent activities and market manipulation, while safeguarding the interests of investors and the general public.
It is important to note that while this approval is a positive development, it is not the final step. Trading will only commence once the SEC has also approved the fund’s S-1 registration statement. The initial filing for this ETF was submitted by NYSE Arca on November 26, 2024. Following the SEC’s approval of the 19B-4 form, the next phase will require the finalization of the registration statement.
Once fully operational, the ETF is designed to hold both spot Bitcoin and spot Ether, enabling investors to gain exposure to these cryptocurrency assets correlated with their market capitalizations. The net asset value (NAV) of the fund and its per-share value will be computed daily at 4:00 p.m. ET.
In addition to Bitwise’s submission, there has been a surge of other ETF applications within the cryptocurrency sector. Many firms are prompted by expected regulatory shifts, with heightened anticipation for the administration’s stance on crypto assets. Since November, various applications for ETFs associated with cryptocurrencies like XRP, Solana, and Litecoin have been filed with the SEC. Prominent financial firms such as VanEck and ProShares have also sought approval for ETFs linked to these assets, while Bitwise has put forward a proposal for a Dogecoin ETF, which notably tends to respond to movements in social media.
Furthermore, there is growing interest in new futures contracts as Coinbase Derivatives has applied to list contracts for Solana and Hedera, with the proposed contract for Solana set to encompass 100 SOL units.
The SEC has continued to facilitate the introduction of cryptocurrency-related products. In December 2024, the commission approved proposals from both Nasdaq and Cboe BZX Exchange to list shares of cryptocurrency index ETFs from Hashdex and Franklin Templeton, initially focusing on spot Bitcoin and Ether, with the potential to expand to additional crypto assets. Analysts are observing significant investor interest in these emerging financial products.
Overall, the approval of the Bitcoin-Ethereum ETF and the accompanying surge in cryptocurrency ETF applications represent crucial developments in the ongoing integration of cryptocurrencies into the broader financial landscape, reflecting a gradual acceptance of diverse cryptocurrency assets by regulatory bodies.