Bitwise Filing Gets NYSE Arca Backing, Bitcoin-Ethereum ETP Nears Reality

Bitwise Asset Management files a 19b-4 application with the U.S. SEC to list a combined Bitcoin and Ethereum Exchange Traded Product (ETP) on behalf of Bitwise Asset Management to be listed on any NYSE Arca exchange.

This filing represents an important step toward introducing a market capitalization-weighted Bitcoin and Ethereum ETP to U.S. exchanges.

These products will provide investors with a balanced exposure to the top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), in the event of approval.

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Bitwise Asset Management, managing over $11 billion in assets, has become a cornerstone of the crypto ETF space.

The firm rocketed to $10 billion in assets under management this month and has shown similarly swift growth as just one of a smattering of higher-profile new entrants to that space.

Bitwise’s move, which is expanding its offerings to include a broader slate of crypto-based ETFs, comes as momentum builds for more ETFs tied at least remotely to crypto.

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Bitwise Plans Bitcoin-Ethereum ETP for Investors

The ETP would be composed of Bitcoin and Ethereum, with the weighted sizes based on their market capitalizations. With this structure, investors can gain exposure to the 2 largest cryptocurrencies in a diversified fashion and may lower risk over a single Crypto investment.

Therefore, the strong growth of BTC and ETH in the past few years would benefit investors. In the filing, Bitwise plans to ensure that its product provides a transparent and secure means for traditional investors to enter the crypto space.

The filing says that the market cap-weighted approach will still follow Bitcoin and Ethereum’s performance proportionally, providing a simple entry point into the crypto market.

Bitwise’s continued expansion into the crypto ETF space reflects the increasing demand for regulated crypto products. In recent years, ETFs with Bitcoin and Ethereum exposures have started to grow, but Bitwise plans to offer a more balanced, comprehensive investment product.

This could appeal to institutional and retail investors trying to access both leading assets in one unified offering.

Political Shifts May Boost Crypto ETF Approvals

NYSE Arca has filed the 19b-4 filing under consideration by the U.S. Securities and Exchange Commission (SEC) related to Bitwise’s request.

Despite this, the SEC has been cautious when approving new crypto-based investment products, specifically Bitcoin and Ethereum ETFs.

The recent approval of Bitcoin and Ethereum ETPs has some analysts hoping that the approval of the Bitwise combined product is more likely.

However, Washington’s political dynamics shape the regulatory landscape for crypto products. Once the 2024 U.S. election comes and Republicans win the House and Senate, a number of industry leaders expect a much more favorable regulatory environment for crypto.

They also believe the next SEC chair may be more willing to accept these crypto products to speed up approvals for new ETFs like Bitwise’s.

Bitwise Asset Management has become one of the really big names in the growing sector of crypto ETFs. As a leader in the industry, the firm has launched spot Bitcoin and Ethereum ETFs, becoming pioneers.

Bitwise has also applied for other crypto products, such as a Solana (SOL) ETF and an XRP ETF, which indicate the company’s intentions to continue growing its line-up of cryptocurrency-based investments.