SEC Approves Bitwise's Bitcoin and Ethereum Spot ETF

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

The proposed ETF, if approved, 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. This move comes after the agency appointed a crypto-friendly acting chair and following a filing made shortly after the November 2024 election victory.

Bitwise's ambitions extend beyond 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 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.

As the SEC continues to review Bitwise's Form S-1 registration application, investors eagerly await the potential launch of the combined BTC and ETH ETF. The accelerated approval process signals a growing interest in and acceptance of cryptocurrencies within the broader investment landscape.