NYSE recently filed a 19b-4 Form to list a Bitwise exchange-traded product (ETP) that offers direct spot exposure to Bitcoin (BTC) and Ethereum (ETH), weighted by their market capitalization. This ETP aims to simplify portfolio allocation for investors looking to gain exposure to these established crypto assets. The market-cap weighting of the fund allows it to adjust dynamically based on the dominance of these assets in the market.
Bitwise’s Chief Investment Officer, Matt Hougan, emphasized that Bitcoin and Ethereum are not competitors, similar to how gold and tech stocks are not competitors. Therefore, recommending both assets in a portfolio can be beneficial. The proposed ETP aims to provide investors with balanced exposure to the two largest cryptocurrencies, making it an easy and actionable recommendation for investors.
If approved, this dual-asset ETP will be the first of its kind in the US market, providing investors with simultaneous exposure to Bitcoin and Ethereum. While awaiting approval, other similar products, such as Franklin Templeton’s Crypto Index ETF and the Hashdex Nasdaq Crypto Index US ETF, are also in the pipeline.
Bitcoin is often seen as a digital store of value optimized for security and monetary use cases, while Ethereum powers the largest decentralized ecosystem for applications, with a significant total value locked (TVL) as per DefiLlama data. Traditional finance giants like BlackRock, Visa, and Franklin Templeton have chosen the Ethereum blockchain to launch their products, showcasing the diverse use cases of these two prominent cryptocurrencies.
As of November 26, BTC and ETH collectively had a market cap of over $2.1 trillion, highlighting their dominance in the crypto market. With the growing interest in cryptocurrency investments, products like the Bitwise Bitcoin and Ethereum ETP offer investors a simplified way to diversify their portfolios and gain exposure to the evolving crypto market landscape.
