NYSE Arca filed a 19b-4 Form to list a Bitwise exchange-traded product (ETP) offering direct spot exposure to Bitcoin (BTC) and Ethereum (ETH), weighted by their market capitalization.
According to a Bitwise statement, the proposed Bitcoin-Ether ETP aims at simplifying portfolio allocation for investors seeking exposure to the crypto market’s most established assets. Its market-cap weighting ensures that the fund dynamically adjusts to reflect these assets’ evolving dominance.
Bitwise CIO Matt Hougan stated:
“Bitcoin and ether aren’t competitors any more than gold and tech stocks are competitors. So when investors ask us which is better to add to their portfolio, often our answer is ‘both.’ This fund aims to make that recommendation easy and actionable, providing balanced exposure to the world’s two largest crypto assets. I think it’s going to be a huge hit with investors.”
Bitwise’s spot Bitcoin and Ethereum ETPs have collectively amassed $4.2 billion in assets under management.
If approved, this dual-asset ETP would be a first-of-its-kind product in the US market, allowing investors simultaneous exposure to the two largest cryptocurrencies.
However, other similar products are also waiting for approval. The US Securities and Exchange Commission (SEC) recently delayed the approval of Franklin Templeton’s Crypto Index ETF, which tracks BTC and ETH, although it is not market cap-weighted.
Furthermore, Brazilian asset manager Hashdex filed to launch a similar product in June, as the Hashdex Nasdaq Crypto Index US ETF would track BTC and ETH.
Different use cases
According to CryptoSlate data, as of Nov. 26, BTC and ETH collectively had a market cap of over $2.1 trillion. Despite their dominance, investors usually perceive the two crypto use cases differently.
Investors primarily regard Bitcoin as a digital store of value optimized for security and monetary use cases.
Meanwhile, ETH powers the Ethereum blockchain, the largest decentralized ecosystem for applications, boasting nearly $110 billion in total value locked (TVL) as per DefiLlama data. Additionally, traditional finance giants like BlackRock, Visa, and Franklin Templeton chose the infrastructure to launch their products.
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