The Securities and Exchange Commission (SEC) is considering a proposal from NYSE Arca, Inc., to list and trade shares of a new exchange-traded fund (ETF), which will hold bitcoin and ether, the two most popular cryptocurrencies. Known as the Bitwise Bitcoin and Ethereum ETF, this fund aims to reflect the value of bitcoin and ether based on daily price benchmarks, with the goal of giving investors exposure to these cryptocurrencies without directly owning them. The SEC invites public comments on this proposal as part of its evaluation process.
Simple Explanation
The SEC is thinking about a plan to let people buy and sell a special kind of stock that is linked to the value of Bitcoin and Ethereum without actually owning those digital coins. This means folks can invest in these cryptocurrencies like they do in regular stocks.