NYSE Arca has filed to list a new exchange-traded product (ETP) from Bitwise, offering direct exposure to Bitcoin and Ethereum. This product aims for a balanced allocation between the two cryptocurrency assets based on market capitalization.
Underlying Assets and NAV Calculation
The Bitcoin-Ether ETP will be listed under NYSE Arca Rule 8.201-E, which governs Commodity-Based Trust Shares. The primary aim is to provide exposure to the value of its holdings minus operational expenses and liabilities. The Net Asset Value will be calculated daily using trusted CME CF pricing benchmarks for both Bitcoin and Ethereum. Bitwise asserts that this dual-asset ETP will offer a more transparent and reliable way to track Bitcoin and Ethereum's value. These benchmarks ensure accurate reflection of the true market value of the two assets.
The Impact on the Crypto Market
If approved, this would be the first product of its kind in the U.S. market, simplifying access to both digital assets in one fund, thus easing diversification of crypto portfolios. Bitwise's prior success with Bitcoin and Ethereum spot ETFs provides confidence in the potential of this new offering.
Rising Competition in the ETF Space
Bitwise is not alone in this endeavor. Other players await approval for similar products. For instance, Franklin Templeton has filed for a Crypto Index ETF tracking Bitcoin and Ethereum without market-cap weighting. Meanwhile, Brazilian asset manager Hashdex has filed for its own Bitcoin-Ethereum ETF. Yet, the timeline for its launch remains unclear. It is uncertain whether the SEC will approve the ETP for listing and trading on NYSE Arca. The commission has shown caution towards approving such financial instruments, highlighted by recent delays.
The future of Bitwise's new ETP remains uncertain but could mark a significant advancement in the cryptocurrency market.
