The Securities and Exchange Commission (SEC) of the U.S. revealed that the agency has started its formal review process for Bitwise’s proposed Bitcoin and Ethereum ETF, a first-of-its-kind hybrid fund that would hold both cryptocurrencies.
SEC Begins Review of Bitwise ETF Proposal
Filed by NYSE Arca, the ETF is designed to track the combined market value of Bitcoin (BTC) and Ethereum (ETH), with an initial allocation of roughly 83% Bitcoin and 17% Ethereum.
On February 19, 2025, NYSE Arca filed a proposal with the Securities and Exchange Commission (SEC) to list and trade shares of the Bitwise Bitcoin and Ethereum ETF under its commodity-based trust rules.
The ETF aims to provide investors with exposure to Bitcoin and Ethereum while holding the actual cryptocurrencies, valued using CME benchmark rates.
The SEC published the proposal for public comment on March 12, 2025, and later extended its review period on April 24, 2025. Now, the Commission has initiated proceedings to further evaluate whether the ETF complies with securities laws.
- Market Manipulation Risks: Whether the proposal adequately safeguards against fraudulent practices in Bitcoin and Ethereum markets.
- Investor Protection: Whether the ETF’s structure (holding actual crypto assets) introduces novel risks not seen in traditional commodity ETFs.
- Public Interest: Whether the ETF aligns with broader market integrity goals.
The SE has not yet reached a decision but is seeking additional public input on these issues. Interested parties may submit written comments within 21 days of the Federal Register notice, with rebuttals within 35 days. Comments can be filed electronically via the SEC’s website or by mail.
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