SEC Greenlights Bitwise Crypto ETF for NYSE Arca Trading
Published Date: 2/5/2025
Notice
Summary
The SEC gave a green light for NYSE Arca to list and trade shares of the Bitwise Bitcoin and Ethereum ETF, which holds real Bitcoin and Ethereum. This means investors can now easily buy and sell these crypto-based shares on a big stock exchange. The approval came quickly, signaling confidence and opening new doors for crypto investing starting early 2025.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
ETF Approved for Trading on NYSE Arca
The SEC approved listing and trading of the Bitwise Bitcoin and Ethereum ETF under NYSE Arca Rule 8.201-E on January 30, 2025. That means investors can purchase and sell shares of this ETF on the NYSE Arca exchange like other listed securities.
Fund Holds Spot Bitcoin and Ether
The Trust will hold spot bitcoin and spot ether and will allocate its assets to each approximate their relative market capitalizations (at filing the relative market cap was 83% bitcoin and 17% ether). The Trust's only assets will be bitcoin, ether, and cash.
Daily NAV and Intraday Pricing Transparency
The Trust's net asset value (NAV) and NAV per Share will be determined once each trading day as of 4:00 p.m. E.T., using the CME CF Bitcoin and CME CF Ether reference rates; the filing also commits to availability of quotation and last-sale information, posting certain Trust information (including NAV) on the Trust website, and dissemination of an intra-day indicative value updated every 15 seconds during the Exchange's core session.
Creation/Redemption in Cash; Creation Unit Size
The Trust will create and redeem Shares only in one or more Creation Units, which initially will consist of at least 10,000 Shares, and authorized participants will deliver only cash to create Shares and will receive only cash when redeeming Shares.
Custody and Administration Arrangements
Coinbase Custody Trust Company, LLC will maintain custody of the Trust's bitcoin and ether, and The Bank of New York Mellon will serve as the cash custodian, administrator, and transfer agent for the Trust.
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Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
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2026-10373, Registered Offering Reform
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2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
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2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
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