The U.S. Securities and Exchange Commission (SEC) accelerated the approval of Bitwise Asset Management's combined Bitcoin and Ethereum ETF. This marks a significant step towards recognizing crypto investment products.
Fund Structure and Management
The ETF, now regulatory approved, will include Bitcoin and Ethereum in proportions relative to their market caps. At the filing time, this ratio was 83% Bitcoin and 17% Ethereum. The fund's net asset value will be calculated daily based on established third-party benchmarks. Bitwise Investment Advisers will manage the fund, with Coinbase providing custody services.
Context of the Approval
The approval follows the SEC's decision in December 2024 to approve similar dual ETFs from Hashdex and Franklin Templeton. The fast-track approval of Bitwise's application shows the SEC's increasing confidence in crypto-backed investment vehicles. Notably, the decision was made on an 'accelerated basis'.
Industry Implications
The quick approval of Bitwise's ETF could indicate a faster process for future cryptocurrency-related exchanges. This opens up new opportunities for investors to diversify into leading digital assets in a regulated environment.
The approval of the Bitwise ETF signals changing attitudes towards crypto investments, potentially leading to a wider range of investment products. This provides investors with new opportunities to engage in digital assets through regulated financial instruments.
