The U.S. Securities and Exchange Commission (SEC) has granted preliminary approval for Bitwise's Bitcoin and Ethereum exchange-traded fund (ETF), marking an important step in institutional acceptance of crypto assets.
A Milestone for Bitwise and Crypto ETFs
The initial SEC approval allows Bitwise to advance towards public trading of its ETF, though final launch approval requires further review. Bitwise Investment Advisers will manage the funds, with Coinbase providing custody services. This approval comes after previous SEC approvals for similar products from Hashdex and Franklin Templeton.
Crypto ETF Market Sees $655M in Inflows
Investor interest surged on January 30, leading to $655 million in inflows towards cryptocurrency ETFs. A notable increase in spot Bitcoin and Ethereum ETFs was observed, with BlackRock and Fidelity leading. Spot Bitcoin ETF capitalization has exceeded $40 billion, representing 5.94% of Bitcoin's circulating supply.
Accelerated SEC Approval and Market Implications
Bitwise's ETF approval marks an expedited SEC review process compared to past practices, potentially signaling positive regulatory changes for crypto products. Experts anticipate future ETFs for other cryptocurrencies.
Bitwise's initial ETF approval may pave the way for broader institutional recognition of cryptocurrencies and speed up the approval process for future products.
