The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the process of listing Bitwise’s Bitcoin and Ethereum exchange-traded fund (ETF). According to a Dec. 10 filing, the SEC is now soliciting public comments on NYSE Arca’s application to list the cryptocurrency index ETF.
A Milestone for Bitwise and Cryptocurrency ETFs
The proposed ETF, jointly filed by Bitwise and NYSE on Nov. 26, aims to provide balanced exposure to Bitcoin (BTC) and Ethereum (ETH)—the two largest cryptocurrencies by market cap. Bitwise describes the fund as a straightforward way for investors to access both assets in one easy-to-manage vehicle.
This move follows a surge in ETF applications as financial institutions vie to expand their crypto product offerings. The SEC’s advancement of Bitwise’s application marks a critical moment for cryptocurrency index funds, signaling growing interest in regulated crypto investment options.
Growing Competition Among Crypto Index ETFs
Crypto index ETFs have become a focal point for asset managers following the introduction of individual Bitcoin and Ethereum ETFs earlier this year. Industry experts believe index ETFs are the natural next step, offering diversified exposure similar to traditional index funds like the S&P 500.
Katalin Tischhauser, head of investment research at Sygnum, noted: “Index ETFs are efficient for investors—just like people buy the S&P 500 in an ETF. The same will happen in crypto.”
In addition to the Bitcoin and Ethereum ETF, NYSE filed on Nov. 27 to list the Bitwise 10 Crypto Index Fund, which includes a broader selection of crypto assets. Meanwhile, competitors like Grayscale, Hashdex, and Franklin Templeton are also seeking SEC approval for similar products, adding to the race for market share in this growing sector.
A Changing Regulatory Landscape
The progress on crypto ETFs coincides with potential changes in U.S. regulatory leadership. President-elect Donald Trump has pledged to transform the U.S. into the “world’s crypto capital,” a stark contrast to the current administration’s stricter stance on cryptocurrency.
SEC Chair Gary Gensler, known for his aggressive approach to crypto regulation, has announced plans to step down when Trump takes office on Jan. 20, 2025. Under Gensler’s leadership, the SEC initiated over 100 enforcement actions against cryptocurrency firms, creating a challenging regulatory environment.
With the prospect of more crypto-friendly regulators in leadership, issuers are hopeful for a smoother path to approval for ETFs, including index funds and staking-related offerings.
