SEC advances NYSE's filing to list Bitwise Bitcoin and Ethereum ETF
The US financial regulator is requesting comments on the application from NYSE Arca to list a Bitwise exchange-traded fund (ETF) holding Bitcoin and Ether.
On November 26, Bitwise and NYSE submitted their application to the Securities and Exchange Commission (SEC). According to a December 10 filing, the SEC has moved the application forward and is now in the stage of soliciting comments from the industry.
The Bitwise Bitcoin and Ethereum ETF is a proposed spot cryptocurrency index fund comprising Bitcoin (BTC) and Ethereum (ETH). The goal is to provide investors with balanced exposure to the two largest crypto assets in an easily accessible format, as stated by Bitwise in a post on November 26.
Growing competition in the crypto ETF market
Industry analysts point out that crypto index ETFs are the next big focus for fund managers, following the launch of BTC and ETH funds in January and July of this year.
The shift to index ETFs is seen as a logical step, as indexes are an efficient method for investors, similar to how people invest in an ETF that tracks the S&P 500. "This will be the same in the crypto world," said Katalin Tischhauser, head of investment research at crypto bank Sygnum, earlier this year.
On November 27, NYSE filed for another Bitwise index ETF, called the Bitwise 10 Crypto Index Fund, which would eventually hold a broader basket of crypto assets.
In October, NYSE Arca requested the SEC‘s approval to list a proposed Grayscale index ETF, called the Grayscale Digital Large Cap Fund.
Additionally, other proposed crypto index funds, including those from asset managers Hashdex and Franklin Templeton, are adding to the competition.
Crypto-friendly leadership in the US
Donald Trump, the incoming president of the US, has announced plans to transform the US into the "world‘s crypto capital." He intends to appoint crypto-friendly leaders to financial regulators once he begins his presidential term on January 20, 2025.
In November, SEC Chairman Gary Gensler, known for his tough stance on crypto regulation, announced that he would depart from the SEC on the day Trump begins his term. Under Gensler‘s leadership, which started in 2021, the SEC took an aggressive approach to crypto regulation, bringing over 100 regulatory actions against companies in the crypto industry.
With Trump at the helm, fund managers are now working to file a variety of proposed crypto funds, including index ETFs and funds offering staking.