The U.S. Securities and Exchange Commission (SEC) has moved NYSE Arca’s request to list the Bitwise Bitcoin and Ethereum ETF to the next stage by seeking feedback from the industry. Filing detailed that the ETF, which holds Bitcoin (BTC) and Ethereum (ETH), aims to provide investors “balanced exposure to the two largest crypto assets in the world in an easy-to-access format.” Bitwise and NYSE initially filed the application on Nov. 26.
The competition for cryptocurrency index funds is intensifying. On Nov. 27, NYSE Arca submitted another filing to list the Bitwise 10 Crypto Index Fund, designed to include a wider range of digital assets. Other proposals include Grayscale’s Digital Large Cap Fund, submitted in October, and similar plans from asset managers Hashdex and Franklin Templeton.
Crypto analysts suggest that index ETFs could become the next significant development in the market. “The next logical step is index ETFs because indexes are efficient for investors—just like how people buy the S&P 500 in an ETF. This will be the same in crypto,” said Katalin Tischhauser, head of investment research at crypto bank Sygnum.
These developments occur alongside shifting leadership in U.S. financial regulation. President-elect Donald Trump, set to take office on Jan. 20, 2025, has promised to make the U.S. the “world’s crypto capital.” Trump is expected to appoint crypto-friendly leaders to head financial agencies.
Gary Gensler, the current SEC chair known for his tough stance on cryptocurrency, announced he will step down when Trump assumes office. Since 2021, Gensler has led the SEC in bringing over 100 regulatory actions against cryptocurrency companies.
The Bitwise Bitcoin and Ethereum ETF is part of a larger trend where issuers aim to expand the options available to crypto investors. With products that focus on broader portfolios or diversified funds, these offerings could make digital assets more accessible. The SEC’s solicitation of feedback marks an important step in the regulatory process for these products. If approved, funds like the Bitwise Bitcoin and Ethereum ETF could open new opportunities for both retail and institutional investors in the cryptocurrency market.