The New York Stock Exchange (NYSE) Arca has filed a Form 19b-4 with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Bitcoin and Ethereum ETF. The proposed ETF is a market-capitalization-weighted fund.
A Look at NYSE Filing for Bitwise’s Bitcoin & Ethereum ETF
Bitwise’s ETF seeks to provide investors with balanced exposure to Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization. Filed under NYSE Arca Rule 8.201-E governing Commodity-Based Trust Shares, the ETF is structured to hold both Bitcoin and Ethereum in proportions reflecting their relative market capitalizations.
The fund’s investment objective is to provide exposure to the value of its holdings minus operational expenses and liabilities. According to the NYSE filing, Net Asset Value (NAV) will be calculated daily using CME CF pricing benchmarks specific to Bitcoin and Ethereum.
NYSE files 19b-4 to list Bitwise Bitcoin & Ether ETF…
Market cap weighted. pic.twitter.com/9SwkfFQzMx
— Nate Geraci (@NateGeraci) November 26, 2024
Matt Hougan, Chief Investment Officer of Bitwise, highlighted the ETF’s appeal to investors seeking diversified cryptocurrency exposure. “Bitcoin and Ethereum aren’t competitors any more than gold and tech stocks are competitors,” said Hougan. He added, “So when investors ask us which is better to add to their portfolio, often our answer is ‘both.’”
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Hougan emphasized the ETF’s potential to simplify investment decisions for those interested in digital assets. “This fund aims to make that recommendation easy and actionable, providing balanced exposure to the world’s two largest crypto assets. I think it’s going to be a huge hit with investors,” he added.
Significance of Latest Move
The ETF will track BTC’s value using the CME CF Bitcoin – New York Variant and ETH’s value using the CME CF Ethereum – Dollar Reference Rate – New York Variant. By utilizing these trusted benchmarks, the fund aims to offer transparent and reliable pricing for its underlying assets.
This move underscores the growing institutional interest in digital assets as the crypto ETF sector continues to mature. If approved, the Bitwise Bitcoin and Ethereum ETF would represent a significant step toward the ongoing effort of integrating crypto into mainstream investment portfolios.
Bitwise has long been a proponent of regulated investment products in the crypto space. The firm’s latest ETF proposal aligns with its broader mission to provide innovative tools for investors to access the digital asset market. Earlier this year, the asset manager launched its spot BTC and ETH ETFs, which marked the beginning of a revolutionary merger of crypto and traditional finance.