SEC Speeds Up Bitcoin-Ethereum ETF Approval

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards approving a combined Bitcoin and Ethereum exchange-traded fund (ETF) proposed by Bitwise Asset Management. On January 30, the SEC granted accelerated approval to the product's 19b-4 filing, paving the way for its listing and trading on the New York Stock Exchange (NYSE).

The approval allows the fund to create and redeem shares in blocks of at least 10,000 shares, indicating that trading could begin soon. However, the SEC must still sign off on the fund's S-1 registration statement before public trading can commence. This final step will evaluate the fund's compliance with disclosure and investor protection requirements.

Bitwise's proposed ETF aims to provide investors with exposure to both Bitcoin and Ethereum within a single investment product. The fund will track the spot prices of both cryptocurrencies, with holdings weighted according to their relative market capitalizations. Based on the latest filing, the fund will allocate approximately 83% to Bitcoin and 17% to Ethereum.

Coinbase's custody business will oversee the fund's holdings, ensuring secure storage for the underlying cryptocurrencies. The fund's net asset value will be calculated daily at 4:00 PM Eastern Time, using price benchmarks that compile real-time trading data from major cryptocurrency exchanges.

This marks the third joint Bitcoin and Ethereum ETF to receive approval under the new SEC administration, currently 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 has been actively expanding its lineup of crypto-based investment vehicles, with several other proposals currently under review. On January 29, the company submitted an S-1 filing for a Dogecoin ETF, reflecting increased institutional interest in meme-based tokens. Additionally, Bitwise has proposed the Bitcoin Standard Corporations ETF, which would invest in publicly traded companies holding over 1,000 BTC in their corporate treasuries.

As the SEC advances Bitwise's dual crypto ETF proposal, market observers are watching closely for the final regulatory steps. The S-1 registration process will determine when investors can access this new investment option that combines exposure to the two largest cryptocurrencies by market capital