SEC Initiates Review of NYSE Arca's Bitcoin and Ethereum ETF Proposal

According to Foresight News, the U.S. Securities and Exchange Commission (SEC) has commenced a process to determine whether to approve or reject a rule change application submitted by NYSE Arca. This application seeks to list and trade a Bitwise Bitcoin and Ethereum ETF. The ETF trust fund plans to hold both Bitcoin and Ethereum, with asset allocation based on the relative market value of the two cryptocurrencies, which was 83% Bitcoin and 17% Ethereum at the time of filing. The SEC has now opened a public comment period, inviting opinions on whether the proposal complies with Section 6(b)(5) of the Securities Exchange Act. The focus is particularly on whether the ETF is designed to prevent fraudulent and manipulative acts. The public can submit written comments within 21 days following the publication in the Federal Register and rebuttal comments within 35 days. NYSE Arca submitted the application on February 19, 2025, and the SEC had previously extended the decision deadline to June 10, 2025.