Bitwise's Bitcoin and Ethereum ETF Approved by SEC

The U.S. Securities and Exchange Commission (SEC) has approved the Bitwise Bitcoin and Ethereum ETF, allowing investors to gain exposure to the two leading cryptocurrencies through a single, regulated product. This approval makes Bitwise the third asset manager to secure approval for a joint BTC-ETH ETF, following Hashdex and Franklin Templeton.

The SEC's approval of Bitwise's 19b-4 filing is a significant regulatory clearance, but the ETF still awaits a final nod on its S-1 registration application before it can be listed on an exchange. Once approved, the fund will provide investors with direct exposure to the spot prices of Bitcoin and Ethereum, weighted according to their market capitalization, with 83% allocated to Bitcoin and 17% to Ethereum.

The Bitwise Bitcoin and Ethereum ETF is led by Bitwise Investment Advisers, with Coinbase serving as the crypto custodian, cash custodian, administrator, and transfer agent, supported by the Bank of New York Mellon.

Bitwise filed the dual-crypto ETF in November 2024, just two months after the election victory of Donald Trump, capitalizing on the regulatory turn of events that have seen an increase in crypto-related ETF applications. According to Bloomberg Intelligence analyst Nathan Dean, issuers are testing the SEC's flexibility with various ETF proposals, such as memecoin-based propositions like the Dogecoin (DOGE) ETF.

This approval adds to the growing swell of institutional crypto investment products. Bloomberg ETF Analyst James Seyffart recently explained that asset managers are "pushing the envelopes" of approvals by the Securities and Exchange Commission, with Tuttle Capital filing ten leveraged crypto ETF applications. Other firms have also filed ETFs tracking alternative cryptocurrencies.

Meanwhile, Coinbase continues to expand its offerings of regulated products, recently adding futures contracts for Solana (SOL) and Hedera (HBAR). Bitwise expresses optimism about the shifting regulatory landscape, suggesting that the current bull market could extend into 2026 and beyond, with Washington embracing digital assets more than ever before.

As demand for regulated crypto products grows among institutions, it may open doors to more diversified investment vehicles within the crypto space.