Bitwise files S-1 registration for ETF tied to Bitcoin and Ether

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As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies and blockchain technology, I find the recent news about NYSE Arca listing shares for a Bitcoin and Ether exchange-traded product intriguing. Having closely followed the regulatory landscape and the SEC’s stance on crypto assets, it seems we might be witnessing a gradual shift towards more acceptance and integration of digital currencies into mainstream finance.

Financial services company, NYSE Arca, has applied for listing and trading of a Bitcoin and Ether-based Exchange Traded Product (ETP) provided by the asset manager, Bitwise.

Through a declaration made on November 26 to the U.S. Securities and Exchange Commission (SEC), Bitwise unveiled plans for initiating trading operations of a Bitcoin (BTC) and Ether (ETH) exchange-traded product on the NYSE Arca, having filed Form S-1 registration statement.

As per the asset manager’s explanation, the aim is to provide investors with a well-balanced investment opportunity in the world’s two leading cryptocurrencies, offered in a convenient and straightforward manner.

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The filing did not specify a particular date for making the public offering except for “as soon as convenient after the effective date” of the Form S-1. As per Bitwise, the ETF’s Bitcoin (BTC) and Ethereum (ETH) holdings will aim to mirror the relative market capitalization of Bitcoin and Ether.

As a crypto investor, I’m uncertain if the SEC will endorse the cryptocurrency product for listing and trading on NYSE Arca. With Chair Gary Gensler stepping down on Jan 20, the commission will have new leadership. The US Senate might confirm a new SEC head nominated by President-elect Donald Trump after he assumes office.

SEC under Trump to be more crypto friendly?

Following Trump’s victory in the U.S. election on November 5th and the Republicans gaining majority control in both the House of Representatives and Senate, some industry experts believe that the regulatory landscape for cryptocurrencies could become more advantageous starting from 2025. However, at the time of writing, it remained undecided who Trump planned to nominate as Gensler’s replacement.

Read moreBitcoin halving could be a ‘sell-the-news’ event, at least for a few months

Following the US election, certain investment managers have introduced Exchange Traded Funds (ETFs) linked to Hedera (HBAR), XRP (XRP), and Solana (SOL) for the first time, possibly gauging how the Securities and Exchange Commission (SEC) would approach various cryptocurrency offerings. On November 21st, Bitwise submitted an S-1 registration for a Solana ETF that directly invests in the underlying asset.

In January, the SEC initially authorized Bitcoin Spot ETF proposals from investment firms to be listed and traded on American stock exchanges. Later in May, they gave their approval for trading Share ETFs based on Spot Ethereum products.

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2024-11-26 23:57