Ark of the New York Stock Exchange filed a Form 19b-4 to list a Bitwise exchange-traded product (ETP) that offers direct spot exposure to bitcoin (btc) and ethereum (eth), weighted by its market capitalization.
According to a bit by bit <a target="_blank" href="https://bitwiseinvestments.com/newsroom/nyse-arca-files-form-19b-4-for-bitwise-bitcoin-and-ethereum-etp”>statementThe proposed bitcoin-Ether ETP aims to simplify portfolio allocation for investors seeking exposure to the crypto market's most established assets. Its market cap weighting ensures the fund dynamically adjusts to reflect the changing dominance of these assets.
Bitwise CIO Matt Hougan stated:
“bitcoin and ether are no more competitors than gold and tech stocks. That's why when investors ask us what's best to add to their portfolio, our answer is often “both.” This fund aims to make that recommendation easy and viable, providing balanced exposure to the world's two largest crypto assets. “I think it’s going to be a big hit with investors.”
Bitwise's bitcoin and ethereum spot ETPs have collectively accumulated $4.2 billion in assets under management.
If approved, this dual-asset ETP would be the first product of its kind in the US market, allowing investors simultaneous exposure to the two largest cryptocurrencies.
However, other similar products are also awaiting approval. The US Securities and Exchange Commission (SEC) recently delayed the approval of Franklin Templeton's crypto Index ETF, which tracks btc and eth, although it is not weighted by market capitalization.
Additionally, Brazilian asset manager Hashdex filed to launch a similar product in June, as the US ETF Hashdex Nasdaq crypto Index would track btc and eth.
Different use cases
According cryptoslate According to data, as of November 26, btc and eth collectively had a market capitalization of over $2.1 trillion. Despite their dominance, investors often perceive the two cryptocurrency use cases differently.
Investors primarily view bitcoin as a digital store of value optimized for monetary and security use cases.
Meanwhile, eth powers the ethereum blockchain, the largest decentralized ecosystem for applications, with nearly $110 billion in total value locked (TVL) according to DefiLlama. <a target="_blank" href="https://defillama.com/chain/ethereum“>data. Additionally, traditional financial giants such as BlackRock, Visa and Franklin Templeton chose the infrastructure to launch their products.
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