SEC Approves Another Bitcoin and Ether Exchange-Traded Fund
US Securities and Exchange Commission Grants Accelerated Approval to Bitwise’s Bitcoin and Ethereum ETF
The US Securities and Exchange Commission (SEC) has approved another joint bitcoin and ether exchange-traded fund (ETF) on Thursday, allowing investors to gain exposure to the two digital assets in a regulated financial product.
Background
In recent days, asset management firms have filed a flurry of crypto-related ETF applications, seeking to take advantage of the new US President Donald Trump’s administration’s promised lighter touch on regulatory issues.
Bitwise’s Product
Bitwise’s Bitcoin and Ethereum ETF, launched with the New York Stock Exchange (NYSE), gives investors exposure to both spot bitcoin (BTC) and ethereum (ETH), weighted by market capitalization. NYSE Arca filed a 19b-4 form with the SEC last November.
Other Crypto-Related ETFs
Companies have filed for ETFs tracking the price of memecoins like Dogecoin (DOGE) and cryptocurrencies like Solana (SOL). Earlier Thursday, Coinbase also filed to list and trade futures products tracking Solana and Hedera.
Hashdex’s Crypto Index ETF
Hashdex’s Crypto Index ETF gives investors exposure to a basket of different cryptocurrencies. The SEC approved a similar product filed by Franklin Templeton, which will launch its product sometime in January.
Conclusion
The SEC’s approval of another bitcoin and ether ETF is a significant development in the cryptocurrency space, providing investors with a new way to gain exposure to digital assets. As the regulatory environment continues to evolve, it is likely that we will see more crypto-related ETFs and products in the future.
FAQs
Q: What is an exchange-traded fund (ETF)?
A: An ETF is a type of investment fund that is traded on a stock exchange, like individual stocks. It is designed to track the performance of a particular index, sector, or asset class, such as a cryptocurrency.
Q: What is a 19b-4 form?
A: A 19b-4 form is a filing required by the SEC for ETFs that track the performance of a commodity or security, such as a cryptocurrency. The form provides detailed information about the ETF’s underlying assets and trading strategy.
Q: What is a spot price?
A: The spot price is the current market price of a cryptocurrency, such as bitcoin or ethereum. It is the price at which the cryptocurrency can be bought or sold immediately, as opposed to a futures price, which is the price at which the cryptocurrency will be delivered at a future date.
Q: What is a futures product?
A: A futures product is a type of financial instrument that allows investors to bet on the future price of a commodity or security, such as a cryptocurrency. It is a contract that obligates the buyer and seller to exchange a specific amount of the underlying asset at a predetermined price on a specific date in the future.
Q: What is the difference between a cryptocurrency and a memecoin?
A: A cryptocurrency is a digital or virtual currency that uses cryptography for security and is decentralized, meaning it is not controlled by any government or institution. A memecoin, on the other hand, is a cryptocurrency that is created as a joke or for entertainment purposes, often with a humorous or ironic name. Memecoins are often used as a form of digital collectible or as a way to test the limits of cryptocurrency technology.
