The U.S. Securities and Exchange Commission (SEC) has recently given the green light for Bitwise’s combined Bitcoin (BTC) and Ethereum (ETH) ETF to move forward, marking a significant milestone in the world of cryptocurrency trading. This approval paves the way for eventual public trading of the product, bringing it one step closer to reality.
On January 30th, the SEC approved Bitwise’s 19b 4 filing through the New York Stock Exchange (NYSE), allowing the issuer to create and redeem shares in “creation units” consisting of at least 10,000 shares. This initial approval sets the stage for the eventual trading of the combined ETF.
The next crucial step in the process is for the SEC to sign off on the S-1 form, which is the registration statement required before public trading can commence. Bloomberg ETF analyst James Seyffart believes that Bitwise’s accelerated approval aligns with similar approvals for Hashdex and Franklin Templeton filings, indicating a positive trend for the industry.
Eric Balchunas, another Bloomberg ETF analyst, noted that Bitwise’s approval came faster than expected, signaling a potential shift towards quicker decision-making at the SEC. This development is seen as a significant milestone by Nate Geraci, president of ETF Store, who views it as a step towards the eventual introduction of full index-based crypto ETFs.
While Bitwise’s approval is a positive sign for the industry, the fate of other crypto index funds such as Grayscale Digital Large Cap and Bitwise 10 Crypto Index remains uncertain. The previous SEC regime postponed decisions on these funds to early February and March, respectively, leaving their approval status up in the air.
Despite these uncertainties, Seyffart remains optimistic about the future of combined BTC and ETH ETFs, noting recent movements in S-1 filings that suggest trading could begin soon. This progress indicates a growing acceptance of cryptocurrency ETFs in the market, setting the stage for potential growth and expansion in the industry.
In conclusion, Bitwise’s approval marks a significant step towards the introduction of combined BTC and ETH ETFs for public trading. With the SEC’s support and growing interest in cryptocurrency investment products, the future looks promising for investors seeking exposure to the digital asset market. Stay tuned for updates on when these exciting new ETFs will hit the market.