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SEC Approves Bitwise's Bitcoin & Ethereum ETF: A New Era for Crypto Investing

Coin WorldFriday, Jan 31, 2025 6:20 am ET

1min read

The U.S. Securities and Exchange Commission (SEC) has approved Bitwise's combined Bitcoin and Ethereum ETF, marking a significant milestone in the cryptocurrency investment landscape. The approval, granted on January 30, allows the fund to be listed and traded on the New York Stock Exchange (NYSE) Arca, pending final approval of the S-1 registration statement.

The ETF, which will initially be able to redeem and create 10,000 daily shares, will be weighted based on market capitalization, with 83% allocated to Bitcoin and 17% to Ethereum. Coinbase will serve as the fund's custodian, and the net asset value will be calculated daily at 4:00 PM Eastern Time.

This approval is the third joint Bitcoin and Ethereum ETF to be greenlit under the new SEC administration led by acting chair Mark Udeya. The regulator noted that the structure of Bitwise's fund closely mirrors previously approved products from Hashdex and Franklin Templeton.

Bitwise filed for this ETF in November 2024, amid growing interest in cryptocurrency investment products. The company has been actively expanding its lineup of crypto-based investment vehicles, with several other proposals currently under review. These include a Dogecoin ETF, the Bitcoin Standard Corporations ETF, an XRP ETF, and a Solana ETF.

Other investment firms have also begun exploring ETFs for various cryptocurrencies. Tuttle Capital has filed for ten leveraged ETF products tracking different altcoins, while Grayscale and Canary have submitted applications for altcoin-based ETFs.

The SEC's approval process for this ETF began when NYSE Arca filed the 19b-4 form on November 26, 2024. Following a public comment period and an amendment on January 21, 2025, the regulator decided to expedite approval, granting it in just 45 days.

Industry experts have expressed optimism about this approval, with some suggesting it could indicate a more accommodating stance from the new SEC leadership regarding crypto-related financial products. As the ETF moves through its final regulatory steps, investors eagerly await the start of public trading.

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