"SEC Greenlights Bitwise's Bitcoin-Ethereum ETF: A Crypto Milestone"

The U.S. Securities and Exchange Commission (SEC) has made a significant move in the cryptocurrency market by granting preliminary approval to Bitwise Asset Management's Bitcoin-Ethereum spot exchange-traded fund (ETF). This approval, announced on January 30, is a crucial first step towards the launch of the ETF, which will provide investors with direct exposure to the spot prices of both Bitcoin (BTC) and Ethereum (ETH) in a single, weighted fund.

The ETF, if approved, will initially allocate 83% to Bitcoin and 17% to Ethereum, based on each asset's market capitalization at the time of submission. The valuations will rely on pricing benchmarks multiplied by their respective circulating supplies. Bitwise Investment Advisers will serve as the ETF manager, with Coinbase acting as the custodian for digital assets, and Bank of New York Mellon handling cash custody, administration, and transfer services.

Bitwise's latest move follows the agency's appointment of a crypto-friendly acting chair and a filing made shortly after Donald Trump's November 2024 election victory. The ETF sector is seeing increasing innovation, with companies like Tuttle Capital submitting filings for ten leveraged crypto ETFs and exploring the boundaries of what the SEC is willing to allow, particularly with unique filings involving memecoins.

Bitwise isn't stopping at BTC and ETH. On January 28, the company filed paperwork for a Dogecoin-focused spot ETF, signaling a broader push into the market for digital asset funds. This expansion comes as the market is buzzing with ETF mania, following the recent launches of Dogecoin ETF, Solana ETF, and memecoin ETFs.

Institutional interest in cryptocurrency ETFs is soaring, with major asset managers like Bitwise, Canary Capital, WisdomTree, and 21Shares submitting filings for XRP ETFs. Grayscale has also moved to convert its XRP Trust into an ETF, indicating a growing push for XRP's entry into the ETF market. Polymarket bettors assign an 83% chance of XRP ETF approval by 2025, signaling optimism in the cryptocurrency's path to ETFs.

The regulatory landscape is shifting in favor of XRP ETF approval,