TL;DR
- NYSE Arca has filed with the SEC to list and trade a new ETP from Bitwise Asset Management, providing balanced exposure to Bitcoin and Ethereum.
- Bitwise’s S-1 registration statement outlines plans for a spot Bitcoin and Ether ETP, offering investors an accessible way to gain exposure to these leading digital assets.
- The introduction of this ETP is expected to attract significant interest from investors, with Bitcoin and Ethereum offering distinct use cases and investment opportunities.
NYSE Arca has submitted Form 19b-4 to the U.S. Securities and Exchange Commission (SEC) seeking approval to list and trade shares of a new exchange-traded product (ETP) developed by Bitwise Asset Management. This ETP will provide balanced exposure to Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization.
https://twitter.com/BitwiseInvest/status/1861492134546940203
Details of the Filing
Bitwise’s S-1 registration statement, submitted on November 26, 2024, outlines plans to launch a spot Bitcoin and Ether ETP. This product is designed to offer investors an accessible way to gain exposure to these leading digital assets. The ETP will hold both Bitcoin and Ethereum in proportions reflecting their relative market caps, providing a balanced investment option.
Market Impact and Investor Appeal
The introduction of this ETP is expected to attract significant interest from investors seeking diversified exposure to the crypto market. Bitcoin, often viewed as a digital store of value, and Ethereum, known for its robust blockchain platform supporting DeFi and NFTs, offer distinct use cases and investment opportunities.
Bitwise CIO Matt Hougan emphasized that Bitcoin and Ether are not competitors but complementary assets, much like gold and tech stocks.
Regulatory Landscape
The SEC’s decision on the proposed ETP remains uncertain, particularly with anticipated leadership changes in the regulatory body. Current SEC Chair Gary Gensler is set to step down on January 20, 2025, with his successor to be appointed by President-elect Donald Trump. Industry leaders speculate that the regulatory environment could become more favorable to cryptocurrency under the new administration.
Bitwise’s Growing Influence
This filing is part of a broader strategy by Bitwise to expand its offerings in the crypto investment space. In 2024 alone, Bitwise launched spot Bitcoin and Ethereum ETPs, acquired European crypto asset manager ETC Group, and filed for a spot Solana ETP. The firm’s comprehensive suite of products now includes ETPs, index funds, and staking solutions, catering to a wide range of investors.
