NYSE Arca filed to list Bitwise’s new exchange-traded product (ETP) that offers direct exposure to Bitcoin and Ethereum. This product provides investors with balanced exposure to these assets, weighted according to their market capitalizations.
Underlying Assets and NAV Calculation
The Bitcoin-Ether ETP would be listed under NYSE Arca Rule 8.201-E, which governs Commodity-Based Trust Shares. Its primary goal is to provide exposure to the value of its holdings, minus operational expenses and liabilities. The Net Asset Value (NAV) of the fund will be calculated daily using trusted CME CF pricing benchmarks for both Bitcoin and Ethereum.
Impact on the Crypto Market
If approved, this Bitcoin-Ethereum ETP would be the first product of its kind in the U.S. market. Investors would have access to both digital assets in one fund, simplifying the process of diversifying their crypto portfolios. Bitwise’s previous success with similar products has resulted in $4.2 billion in assets under management.
Rising Competition in the ETF Space
Despite Bitwise's filing, they are not alone in seeking to offer such products. Other market players like Franklin Templeton and Hashdex are also attempting to gain SEC approval for their ETPs. For example, Franklin Templeton awaits approval for its index fund tracking Bitcoin and Ethereum, which unlike Bitwise's offering, is not market-cap-weighted.
Whether the SEC will approve the ETP for listing and trading on NYSE Arca remains to be seen as the commission has been cautious with cryptocurrency financial products. The expected departure of SEC Chair Gary Gensler in 2025 might influence future decisions on crypto products.
