Weighted by Bitcoin and Ethereum Market Capitalization
Bitwise Proposes Dogecoin-Tracking ETF
Focus on SEC Approval
The U.S. Securities and Exchange Commission (SEC) has approved the review request for the launch of an exchange-traded fund (ETF) combining Bitcoin and Ethereum. With cryptocurrency-friendly President Donald Trump in office, the launch of cryptocurrency-based ETFs by financial institutions is expected to become more active. Attention is focused on whether ETFs tracking meme coins will also pass the SEC's review hurdle.
Bloomberg reported that the SEC approved Form 19b-4, the proposal for the Bitcoin and Ethereum ETF filed by Bitwise Asset Management, on the 30th (local time). However, to actually trade this on the market, approval of Form S-1, which can be considered a securities registration statement, is also required.
The newly approved ETF is designed to weight Bitcoin and Ethereum according to their market capitalization. The fund structure is similar to existing ETFs that directly hold Bitcoin and Ethereum.
After cryptocurrency-friendly President Donald Trump won the U.S. presidential election in November last year, financial companies have been proposing more cryptocurrency portfolios to the SEC. Grayscale and CoinShares have completed applications for ETFs based on Litecoin, Solana, and Ripple.
In Bitwise's case, they proposed an ETF tracking Dogecoin. This ETF is a typical meme coin, having no intrinsic value and its price fluctuating depending on its popularity on social media.
Nathan Dean, senior policy analyst at Bloomberg Intelligence, noted in a report, "Cryptocurrency-related investment firms are testing how far the SEC will approve by applying for ETFs with unique characteristics, including meme coin ETFs."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
