Bitwise to Launch Bitcoin and Ethereum-Based ETF

Digital asset manager Bitwise has submitted an SEC application via Form S-1 to launch a combined ETF based on Bitcoin and Ethereum.

The exchange-traded product offers exposure to the spot prices of the two largest cryptocurrencies by market capitalization, based on indices from the CME. The asset allocation in the basket approximately reflects their relative market value.

Coinbase Custody will serve as the custodian for the Bitwise Bitcoin & Ethereum ETF.

The fund’s shares will be traded on the NYSE Arca platform, which has submitted Form 19b-4 to the SEC. The listing will occur following regulatory approval of both applications.

Today, NYSE Arca filed to list a Bitwise ETP that would hold both spot bitcoin AND ether, weighted by market cap.

The goal: Give investors balanced exposure to the two largest crypto assets in the world in an easy-to-access format. pic.twitter.com/TcBpQM8OhW

— Bitwise (@BitwiseInvest) November 26, 2024

Bitwise noted that Bitcoin is primarily viewed as a monetary asset or digital store of value. In contrast, Ether powers a blockchain platform that hosts some of the largest cryptocurrency use cases, such as stablecoins, DeFi, NFTs, tokenization, and more.

“Bitcoin and Ethereum are no more competitors than gold and tech stocks. So when investors ask us which is better to add to their portfolio, we often say: ‘both.’ The fund’s goal is to make this recommendation simple and actionable, providing balanced access to the two largest crypto assets in the world,” said Bitwise CIO Matt Hougan.

The company is among the issuers of ETFs based on the spot price of digital gold, as well as a similar ETH product.

In October, Bitwise filed an application to launch an exchange-traded XRP fund.