Bitwise's Bitcoin and Ethereum ETF Speeds Ahead with SEC's Accelerated Approval

The U.S. Securities and Exchange Commission (SEC) has granted accelerated approval for Bitwise's spot Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Fund (ETF), signaling broader acceptance of cryptocurrencies in the investment landscape. The SEC confirmed the initial approval for the ETF, which follows the regulator's approval of similar ETFs last month.

On January 30, the SEC approved NYSE Arca's 19b-4 filing, allowing Bitwise's combined Bitcoin and Ethereum ETF to be listed and traded. According to the filing, the fund's asset allocation will closely reflect the relative market capitalizations of Bitcoin and Ethereum, with holdings limited to these two cryptocurrencies and cash reserves. Notably, the SEC determined that the filing was substantially similar to other approved spot crypto ETFs, enabling an expedited approval process.

The SEC stated, "The Commission finds good cause to approve the Proposal prior to the 30th day after the date of publication of notice of Amendment No. 126 in the Federal Register." This development follows the SEC's approval of the first-ever combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton in December 2024.

Bloomberg ETF analyst James Seyffart pointed out on X that the approval of Bitwise's ETF was expected, given the precedent set by the earlier approvals of Hashdex and Franklin Templeton's ETFs. Bloomberg Senior ETF Analyst Eric Balchunas also commented on the decision, stating that it was "news but expected" and noting the speed of the approval process, which took only 45 days instead of the standard 240-day review period.

NYSE Arca filed the 19b-4 on November 26, 2024, and after a public comment period and a revision to the filing on January 21, 2025, the SEC decided to fast-track its approval. The approval adds to Bitwise's growing footprint in the crypto ETF space, as the investment manager has also submitted applications for Solana (SOL), XRP (XRP), and Dogecoin (DOGE) ETFs. However, the future of meme coin ETFs remains uncertain due to their higher volatility and speculative nature. Meanwhile, the Bitwise 10 Crypto