SEC Approves Bitwise's Bitcoin and Ethereum ETF: A Major Step Towards Crypto Mainstream

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards approving Bitwise Asset Management's highly anticipated spot Bitcoin and Ethereum exchange-traded fund (ETF). On January 30, the regulator approved the fund's Form 19b-4, marking the first crucial step towards the ETF's launch.

Before the ETF can become operational, the SEC must still greenlight Bitwise's Form S-1 registration application. If successful, this ETF would offer investors direct exposure to the spot prices of both Bitcoin (BTC) and Ethereum (ETH) in a single, weighted fund.

According to the filing, the fund 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. Meanwhile, Bank of New York Mellon will handle cash custody, administration, and transfer services.

Bitwise's latest move comes after the agency appointed a crypto-friendly acting chair and a filing made shortly after Donald Trump's November 2024 election victory.

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. The ETF sector is also seeing increasing innovation, with Tuttle Capital recently submitting filings for ten leveraged crypto ETFs. Analysts suggest that issuers are "testing the limits of what this SEC is going to allow," particularly with unique filings involving memecoins.