Key Insights:
- The U.S. Securities and Exchange Commission (SEC) has approved the Bitwise Bitcoin and Ethereum ETF, allowing investors to gain exposure to both spot Bitcoin (BTC) and Ethereum (ETH).
- This ETF is weighted by market capitalization, offering a consolidated investment in two major cryptocurrencies.
- The approval comes shortly after similar products from Hashdex and Franklin Templeton received the green light from the SEC.
- Bitwise’s ETF was launched in partnership with the New York Stock Exchange, which filed a 19b-4 application last November.
Background:
The SEC’s latest approval represents a significant step for cryptocurrency investors, providing a regulated option to invest in Bitcoin and Ethereum without the need for direct asset management. Asset managers are currently rushing to establish crypto-related ETF products in light of the favorable regulatory climate under the new administration. This includes plans for ETFs tracking popular cryptocurrencies such as Dogecoin (DOGE) and Solana (SOL).