SEC Grants Accelerated Approval For Bitwise’s Combined Bitcoin-Ethereum ETF
The US Securities and Exchange Commission (SEC) has expedited the approval process for Bitwise Asset Management’s joint Bitcoin-Ethereum exchange-traded fund (ETF).
On January 30, 2024, the SEC filing stated: “the Trust’s allocation of its assets to bitcoin and ether will approximate the relative market capitalization of bitcoin and ether to one another.” This decision signifies a critical advancement for cryptocurrency financial products.
Amid regulatory challenges, Bitwise has advocated for clearer guidelines. According to a recent survey, 55% of financial advisors harbor concerns about regulations, while 42% emphasize the need for enhanced education.
More About Bitwise Hybrid Bitcoin Ethereum ETF
The Bitwise Bitcoin-Ethereum ETF aims to reflect spot prices of Bitcoin and Ethereum based on their market capitalizations. As of the latest filing, the fund included about 83% Bitcoin and 17% Ethereum, along with cash reserves for stability and liquidity. Coinbase will manage custody, and the product is due to be listed on NYSE Arca.
This combined structure allows easier access to both assets, catering to both institutional and retail investors.
Leadership Changes In SEC
The SEC’s swift approval of this ETF, taking only 45 days instead of the typical 240, implies a notable shift in its approach towards cryptocurrencies. Additionally, the previously ongoing lawsuit involving Ripple Labs is no longer found on the SEC’s site, suggesting a potential resolution has been reached under the new administration.
Key Takeaways
- The approval of Bitwise’s combined Bitcoin-Ethereum ETF has significantly influenced investor confidence.
- Spot Bitcoin and Ethereum ETFs saw inflows of $655 million on January 30, reflecting renewed optimism in regulated crypto investment options.
