- Bitwise submitted an S-1 filing for its Bitcoin-Ethereum Spot ETF, seeking SEC approval.
- The ETF will track Bitcoin and Ether’s market cap, providing easier access for investors.
- Regulatory shifts, including SEC and US political changes, could impact approval timelines.
Bitwise Asset Management submitted to the Securities and Exchange Commission (SEC) the relevant S-1 documents of its new Bitcoin-Ethereum Spot ETF. The SEC reportedly approved its Bitcoin ETF options, which were introduced and went public the previous week.
The proposal intends that investors easily obtain the top two cryptocurrencies, Bitcoin and Ether, by tracking their market capitalization. Bitwise seeks to make these crypto assets accessible in an ETF format that allows investors to benefit from both crypto assets without mastering the complexities of direct trading.
Bitwise’s Strategic Move in the Crypto Market
According to the file, the public offering will take place “as soon as practicable after the effective date” of the Form S-1, although it did not specify a specific time. The ETF will have a combination of Bitcoin and Ether with proportions that would be in accordance with their market caps. Because of this balance, investors would have exposure to both of the top cryptocurrencies.
While the proposal has been submitted, the SEC’s approval remains uncertain. With changes in SEC leadership expected after January 20, 2025, when Chairman Gary Gensler resigns, industry observers are keenly watching for potential shifts in regulatory attitudes toward cryptocurrency products. The commission’s future actions could significantly impact the approval timeline.
Bitwise intends to strengthen its position as a leading issuer of Bitcoin ETFs by launching an ETF that would provide active exposure to the two most prominent assets in the crypto market, Bitcoin and Ether. Bitcoin and Ether make up over 70% of the global crypto market capitalization, investors will also look for these top investments with total market domination was more than $2.1 trillion.
“Bitcoin and Ethereum aren’t competitors any more than gold and tech stocks are competitors,” said CIO Matt Hougan said on the press release.
Regulatory Shifts and Bitwise’s Crypto ETF Initiative
Given Donald Trump’s victory as US president, the regulatory environment around cryptocurrencies may change in 2025. According to industry leaders, the Republican-controlled House and Senate may result in legislative changes that favor items related to cryptocurrency, creating a more favorable atmosphere for the sector.
Although it remains unclear who will replace Gensler at the SEC, many are optimistic that a new SEC leadership could expedite approvals for crypto products like ETFs. This potential change has added an element of uncertainty to the timeline for Bitwise’s Bitcoin-Ethereum spot ETF approval.
Investors are confident in Bitwise’s capacity to fulfill their requirements, as evidenced by the popularity of its previously listed products, notably the spot bitcoin ETF, BITB, which has $2.1 billion in inflows. The growing demand for crypto ETFs is also reflected in the company’s Ethereum spot ETF (ETHW), which has $390 million in inflows.
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