NYSE Arca filed to list and trade Bitwise's new product, offering direct spot exposure to Bitcoin and Ethereum. The proposed ETP offers balanced exposure to these cryptocurrencies, weighted according to their market capitalizations.
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. Its main goal is to provide exposure to the value of its holdings, minus operational expenses and liabilities. The NAV of the fund will be calculated daily using trusted CME CF pricing benchmarks for both Bitcoin and Ethereum. Bitwise states that this dual-asset ETP will provide a more transparent and reliable way to track the value of Bitcoin and Ethereum.
The Impact on the Crypto Market
If approved, this Bitcoin-Ethereum ETP would be the first of its kind in the U.S. market. Investors will have access to both digital assets in one fund, simplifying the process of diversifying their crypto portfolios. Bitwise's previous success with Bitcoin and Ethereum spot ETFs also provides confidence in the potential of this new offering.
Rising Competition in the ETF Space
However, Bitwise is not alone in its quest to offer crypto-related ETPs. Other players are also seeking approval for similar products. For instance, Franklin Templeton's Crypto Index ETF, which tracks Bitcoin and Ethereum, is awaiting SEC approval. Meanwhile, Brazilian asset manager Hashdex has filed for its own Bitcoin-Ethereum ETF. The outcome remains to be seen and could be influenced by anticipated leadership changes at the SEC in 2025, including the potential resignation of Gary Gensler.
The financial sector is actively evolving with the introduction of new crypto products like Bitwise's proposed ETP. It will be insightful to see how further SEC decisions will impact the market and investor engagement with cryptocurrencies.
