U.S. regulators are currently evaluating NYSE Arca's proposal to list a Bitwise exchange-traded fund (ETF) containing both Bitcoin and Ether. The application, filed on November 26, is moving to the next stage with the SEC requesting industry comments.
NYSE Arca and Bitwise Proposal
NYSE Arca and Bitwise have applied to the U.S. Securities and Exchange Commission (SEC) to list an ETF holding both Bitcoin and Ether. These two largest cryptocurrencies are intended to provide investors with easy access to major crypto-assets. Bitwise stated that its aim is to offer balanced exposure to these significant digital currencies.
Competition in the Crypto ETF Sector
Analysts highlight increasing competition in the field of indexed crypto ETFs. Following the introduction of Bitcoin and Ether funds, the next logical progression, according to experts, is index ETFs. The objective is to afford investors the capability to acquire a portfolio akin to an S&P 500 index, but within the crypto domain. On November 27, NYSE also filed for the listing of Bitwise 10 Crypto Index Fund, which aims to represent a broader array of crypto-assets. "The next logical step is index ETFs because indexes are efficient for investors — just like how people buy the S&P 500 in an ETF," said Katalin Tischhauser, head of investment research at Sygnum.
Future of Cryptocurrency in the US
U.S. President-elect Donald Trump has vowed to transform the country into the 'world’s crypto capital,' appointing crypto-friendly leaders to head financial regulators. In recent statements, SEC Chair Gary Gensler announced his departure from the agency on the day Trump's presidential term commences. Under Gensler's leadership, the SEC adopted a stringent regulatory stance towards cryptocurrencies, enacting over 100 regulatory actions since 2021. However, with the incoming administration, a wider range of crypto fund proposals is expected to be considered.
Upcoming changes in SEC leadership and actions of new regulators could significantly impact the cryptocurrency market in the U.S. New index and staking ETFs may emerge, providing investors with more options to participate in the crypto industry.
