Asset management firm Bitwise has filed a registration statement with the United States Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) that combines Bitcoin and Ether holdings. The proposed ETF would trade on NYSE Arca, offering investors balanced exposure to the two largest cryptocurrencies in a single product.
Details of the Filing
In a November 26 filing, Bitwise submitted Form S-1, stating that the ETF aims to provide investors with access to Bitcoin and Ether in proportions that reflect their relative market capitalizations. The firm described the product as a straightforward way for investors to gain exposure to these key crypto assets.
The filing does not include a specific launch date, noting only that trading would begin “as soon as practicable after the effective date.” Approval of the ETF remains uncertain, particularly as the SEC is set to undergo a leadership change early next year.
Regulatory Shifts on the Horizon
Current SEC Chair Gary Gensler will step down on January 20, 2025, leaving the commission under new leadership appointed by President-elect Donald Trump. With a Republican-led Congress taking control in 2025, many industry experts anticipate a more favorable regulatory environment for cryptocurrencies.
The SEC approved the first spot Bitcoin ETFs in January 2024, followed by spot Ether ETFs in May. Since the US election on November 5, several asset managers, including Bitwise, have submitted filings for innovative crypto ETFs, potentially testing how the SEC might approach new products.
For example, Bitwise recently filed an S-1 registration for a spot Solana ETF, and other firms have explored ETFs tied to alternative cryptocurrencies like Hedera.
The Appeal of Bitcoin and Ether ETFs
Bitwise’s proposed ETF would cater to growing investor demand for accessible cryptocurrency investment options. By combining Bitcoin and Ether in a single product, the ETF would allow investors to diversify within the crypto market without managing individual assets.
Industry analysts suggest that the launch of such ETFs could further mainstream crypto adoption. Since the SEC’s initial approval of spot crypto ETFs, interest in these products has surged, reflecting Bitcoin and Ether’s dominance in the cryptocurrency landscape.
While Bitwise’s Bitcoin and Ether ETF remains under review, its approval would mark another milestone in integrating digital assets into traditional financial markets. As the regulatory environment evolves under a new administration, the outlook for cryptocurrency ETFs could become increasingly optimistic.
