Bitwise Asset Management has received an initial approval from the U.S. financial regulator for its new exchange-traded fund (ETF) that tracks both Bitcoin and Ethereum.
On January 30, the Securities and Exchange Commission (SEC) granted the first stage of the approval process. This paves the way for the launch of this innovative ETF. Before the fund becomes tradable, the SEC must still approve a separate registration application.
What Does This ETF Entail?
The Bitwise Bitcoin and Ethereum ETF allows investors to gain exposure to both Bitcoin and Ethereum within a single fund. The weighting of the two digital assets is determined based on their market capitalization. At the time of filing, the distribution was 83% Bitcoin and 17% Ethereum.
The market capitalization of both cryptocurrencies is calculated by multiplying the price benchmarks by the current circulating supply, as stated in the application.
A Growing Acceptance of Crypto
The approval of this first part of the application comes at an interesting time. There is increasing interest in regulated crypto products, and this step reflects the growing acceptance of digital assets within the financial sector.
Bitwise is not the only player capitalizing on this development. This is the third ETF of its kind to receive SEC approval, following similar approvals for products from Hashdex and Franklin Templeton in December.
Additionally, Bitwise is already looking ahead: the company recently submitted an application for an ETF focused on memecoins, with Dogecoin as one of the fund‘s components.
The Future of Crypto Investments
According to Bitwise, the crypto market is in a strong upward trend that could last for several years. The broader acceptance of digital assets in the financial world and the increasing involvement of policymakers contribute to a more stable and accessible crypto ecosystem.
This step brings the dream of broader crypto investment adoption even closer. The developments surrounding regulated crypto products demonstrate that digital currencies are increasingly securing a place in traditional financial markets.
Disclaimer: This is not financial advice. Always conduct your own research and seek professional guidance.