NYSE Arca has 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. The proposed Bitcoin-Ether ETP aims to simplify portfolio allocation for investors seeking exposure to the crypto market’s most established assets. Bitwise CIO Matt Hougan believes that both Bitcoin and Ether are not competitors, and investors should consider adding both to their portfolio for balanced exposure.
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 awaiting approval, such as Franklin Templeton’s Crypto Index ETF, which tracks BTC and ETH, and the Hashdex Nasdaq Crypto Index US ETF, which would also track BTC and ETH.
Bitcoin is primarily seen as a digital store of value optimized for security and monetary use cases, while ETH powers the Ethereum blockchain, the largest decentralized ecosystem for applications. Traditional finance giants like BlackRock, Visa, and Franklin Templeton have chosen the infrastructure to launch their products. As of Nov. 26, BTC and ETH collectively had a market cap of over $2.1 trillion, showcasing their dominance in the crypto market and different use cases perceived by investors.
In conclusion, the NYSE filing to list Bitwise’s Bitcoin and Ethereum mixed ETP highlights the growing interest in cryptocurrencies from institutional investors. The market cap-weighted ETP aims to provide investors with a simple and actionable way to gain exposure to the two largest crypto assets. With similar products in the pipeline awaiting approval, the future looks bright for investors looking to diversify their portfolios with both Bitcoin and Ethereum.
