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SEC Speeds Up Bitcoin, Ethereum ETF Approval

Coin WorldFriday, Jan 31, 2025 1:32 am ET

1min read

The U.S. Securities and Exchange Commission (SEC) has granted accelerated approval for Bitwise's spot Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Fund (ETF), marking a significant milestone in the cryptocurrency market. The SEC confirmed the initial approval for the ETF, which follows the regulator's approval of similar ETFs last month.

The SEC's decision to expedite the approval process for Bitwise's ETF is notable, as it indicates a potential shift in the regulatory environment surrounding digital assets. The agency determined that the filing was substantially similar to other approved spot crypto ETFs, allowing for an expedited approval process. This development comes on the heels of the SEC's approval of the first-ever combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton in December 2024.

Bloomberg ETF analyst James Seyffart pointed out that the approval of Bitwise's ETF was expected, given the precedent set by the earlier approvals of Hashdex and Franklin Templeton's ETFs. Eric Balchunas, a senior ETF analyst at Bloomberg, also commented on the decision, stating that it was "news but expected." He noted that the approval process took only 45 days, significantly shorter than the standard 240-day review period.

NYSE Arca filed the 19b-4 on November 26, 2024, and after a public comment period and a revision to the filing on January 21, 2025, the SEC decided to fast-track its approval. The approval adds to Bitwise's growing footprint in the crypto ETF space, as the investment manager has also submitted applications for Solana (SOL), XRP (XRP), and Dogecoin (DOGE) ETFs. However, the future of meme coin ETFs remains uncertain due to their higher volatility and speculative nature. Meanwhile, the Bitwise 10 Crypto Index Fund also remains under review.

The approval of Bitwise's ETF could pave the way for a new era of cryptocurrency investments, fostering increased institutional interest and potentially stabilizing market dynamics. The swift decision by the SEC suggests a willingness to embrace regulated cryptocurrency products, which may encourage more firms to apply for similar ETFs. As more applications for crypto ETFs are filed, the broader market will be watching

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