NYSE Arca has filed to list Bitwise's new product offering direct spot exposure to Bitcoin and Ethereum. This proposal provides balanced asset exposure according to their market caps.
Key Features of the ETP
Bitwise's new fund will be listed under NYSE Arca's rules governing Commodity-Based Trust Shares. The primary objective is to provide exposure to asset values minus operational expenses and liabilities. NAV will be calculated daily using CME CF pricing benchmarks for Bitcoin and Ethereum, ensuring transparent and reliable market value tracking.
Impact on the Crypto Market
If approved, this would be the first-of-its-kind product in the US, giving investors access to two digital assets in one fund, simplifying crypto portfolio diversification. The success of Bitwise’s previous products boosts confidence in this new venture.
Rising Competition in the ETF Space
Bitwise isn't the only player in the crypto-ETP space. Franklin Templeton awaits approval for its own ETF, which lacks market-cap weighting unlike Bitwise’s proposal. Brazilian asset manager Hashdex has filed for its own ETF. The exact outcome for Bitwise's filing remains uncertain as the SEC cautiously approaches crypto-related ETF approvals.
The SEC's decision on Bitwise’s filing could significantly influence the future of the US crypto market. With expected leadership changes at the SEC in 2025, the landscape for such products may shift.
