The US Securities and Exchange Commission (SEC) has granted initial approval for an ETF from Bitwise Asset Management tracking the prices of Bitcoin and Ethereum.
Initial SEC Approval
On January 30, the SEC approved the 19b-4 form for Bitwise's ETF. This is the first step in a series needed to start trading the fund. Bitwise still needs to get approval for a previously submitted Form S-1 for the fund to go live.
Fund Structure and Management
The Bitwise ETF will provide exposure to the spot prices of Bitcoin and Ether in a single fund, with asset allocation according to their market capitalizations: 83% Bitcoin and 17% Ether. Bitwise Investment Advisers will manage the fund, Coinbase will provide custody services, and Bank of New York Mellon will act as the cash custodian and administrator.
Context and Market Impact
The SEC's approval comes less than two weeks after a new acting chair was appointed. This move follows approvals for similar ETFs by Hashdex and Franklin Templeton. Bitwise is also planning to launch ETFs for memecoins. Analysts continue to discuss the possibilities and limitations of filing for crypto ETFs.
SEC's approval is an important step for Bitwise towards launching their ETF, which could have a significant impact on the cryptocurrency market. The strong interest in cryptocurrencies from regulators and investors reflects the growing integration of digital assets into the financial system.
