SEC Expeditiously Approves Bitwise's Bitcoin-Ethereum ETF Amidst Massive Inflows
By: Eliza Bennet
The recent approval by the U.S. Securities and Exchange Commission (SEC) of the new Bitwise Bitcoin and Ethereum exchange-traded fund (ETF) has marked a significant advancement in cryptocurrency investment products, leading to an influx of funds exceeding $655 million on January 30. This landmark decision reflects a resurgence in investor interest for assets tied to the two major cryptocurrencies, Bitcoin and Ethereum.
Spot Bitcoin ETFs experienced the largest inflows, with a staggering $588.22 million in net investments spearheaded by big names such as BlackRock and Fidelity. BlackRock's iShares Bitcoin Trust led the charge with $321.5 million, followed closely by Fidelity's Wise Origin Bitcoin Trust with $209.14 million. Contributions from other funds, such as Bitwise's Bitcoin ETF, ARK 21Shares' Bitcoin ETF, and Franklin Templeton’s offerings, further bolstered the landscape with cumulative inflows, while Grayscale's investments rounded up the total.
The Ethereum ETF sector also showed promising activity with net inflows reaching $67.77 million. BlackRock again led the push with its iShares Ethereum Trust ETF pulling in $79.86 million. Meanwhile, most funds posted gains except for Grayscale’s Ethereum Trust, which faced outflows totaling around $40.29 million. Ethereum-related inflows were crucial in amplifying the overall market cap that both Bitcoin and Ethereum ETFs represent.
The SEC's decision to expedite the approval of the Bitwise fund, exposing investors to a mix of Bitcoin and Ethereum at a ratio reflecting their market capitalization (83% Bitcoin and 17% Ethereum), marks a possible shift in the regulatory body's approach to cryptocurrency financial products. Normally requiring a 240-day review period, the ETF received approval in just 45 days. Such swift action could signify a greater acceptance of cryptocurrency investment channels and herald forthcoming approvals for other crypto-related proposals under consideration, potentially smoothing the path for future developments in the sector.
