The Approval of Bitwise’s Bitcoin-Ethereum ETF by the U.S. SEC and the Road Ahead
Bitwise’s combined Bitcoin and Ethereum ETF has received the go-ahead from the U.S. Securities and Exchange Commission (SEC), marking an important milestone towards potential trading in the future.
Recently, on January 30th, the SEC granted approval for Bitwise’s 19b 4 filing, which is a key step through the New York Stock Exchange (NYSE). The ETF will have the capacity to create and redeem 10,000 shares daily through ‘creation units.’ This development has raised speculations about the imminent beginning of combined ETF trading.
Is The SEC Going to Greenlight Trading Shortly?
The next crucial stage prior to public trading execution involves SEC authorization of the S-1 form, which is the registration statement.
Bloomberg ETF analyst James Seyffart remarked that Bitwise’s swift approval was in alignment with its initial deadline, following the approval of Hashdex and Franklin Templeton filings. He commented, “Today marked the first deadline, and considering the earlier approvals, it was expected that this would also follow suit quickly.”
Eric Balchunas, another Bloomberg ETF analyst, expressed surprise at the speedy approval for Bitwise, emphasizing, “They managed to get approval in just 45 days instead of waiting for 240 days. While I’d like to view this as a signal of a faster SEC approach, it’s difficult to ascertain for certain.”
Nate Geraci, president of ETF Store, deemed this approval as a milestone towards the long-term objective of full-fledged index-based crypto ETFs, akin to the performance of the S&P Index. He remarked, “We are swiftly progressing towards comprehensive index-based and actively managed spot crypto ETFs; this is merely the initial phase.”
While Bitwise’s approval was expedited, bear in mind that the preceding SEC administration postponed decisions regarding some crypto index funds such as Grayscale Digital Large Cap and Bitwise 10 Crypto Index to possibly early February and March respectively.
There is anticipation regarding whether they would secure accelerated approval before their subsequent deadlines.
Seyffart mentioned some movements in S-1 filings hinting that the combined Bitcoin and Ethereum ETFs might commence trading in the near future. He commented, “There has been notable activity concerning Hashdex yesterday and today. Various updates were filed regarding their S-1 and 19b-4, indicating that these products are likely to be listed very soon.”