- Bitwise moves closer to launching a Bitcoin and Ethereum ETF after SEC approves its 19b-4 form
- The proposed ETF will track both cryptocurrencies, weighted 83% Bitcoin and 17% Ethereum by market cap
- Bitwise expands its crypto ETF ambitions with filings for Dogecoin and XRP ETFs in January
Bitwise took a major step toward its plan of creating a Bitcoin and Ethereum exchange-traded fund. On January 30, the Securities and Exchange Commission approved the 19b-4 form, leading the fund closer to a major crypto ETF.
According to the Securities Exchange Act of 1934, the 19b-4 rule requires self-regulatory financial organizations to get approval from the SEC before making changes to their financial products offered to the American public. By getting the nod from the Commission, Bitwise now only needs the approval of the S-1 Form for the creation of the new ETF.
Bitwise’s New ETF
The new exchange-traded fund is set to combine the value of the two largest cryptocurrencies in the world—Bitcoin and Ethereum—tracking both currencies in a single fund. By doing so, Bitwise would be a new product for investors to fund, expanding its reach in the ETF market.
This ETF value per share would be weighted accordingly to each cryptocurrency market capitalization. According to the SEC filing—the relative market capitalization of bitcoin and ether was 83% bitcoin and 17% ether.
Delaware State Trust and Bitwise will be the new fund’s trustees. Coinbase will be the digital asset custodian for the fund, while the Bank of New York Mellon will custody the fund’s cash holdings.
January has certainly been a busy month for Bitwise, as the fund manager has implemented several moves that could vastly expand its ETF reach. Just this week, Bitwise filed for a new Dogecoin ETF statutory trust. Also, the company also requested SEC permission to debut a new XRP ETF on January 10.
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