NYSE Arca filed a Form 19b-4 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 statementThe proposed Bitcoin-Ether ETP aims to simplify portfolio allocation for investors seeking exposure to the crypto market’s most established assets. Its market capitalization weighting ensures that the fund dynamically adjusts to reflect the changing dominance of these assets.
Matt Hougan, CIO of Bitwise, said:
“Bitcoin and ether are no more competitors than gold and tech stocks are. So when investors ask us what is best to add to their portfolio, our answer is often “both.” This fund aims to make this recommendation simple and achievable, by 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 accumulated $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 to gain exposure to the two largest cryptocurrencies simultaneously.
However, other similar products are also awaiting approval. The United States 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 weighted by market cap.
Additionally, 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 According to the data, as of November 26, BTC and ETH collectively had a market capitalization of over $2.1 trillion. Despite their dominance, investors generally perceive the two crypto use cases differently.
Investors primarily view 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, with nearly $110 billion in total value locked (TVL) according to DefiLlama. data. Additionally, traditional financial giants like BlackRock, Visa, and Franklin Templeton have chosen the infrastructure to launch their products.
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