"SEC Speeds Up: Bitwise's Bitcoin & Ethereum ETF Approved"

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). The SEC confirmed that the filing received expedited approval, following the regulator's approval of similar ETFs last month.

On January 30, the SEC approved NYSE Arca's 19b-4 filing, allowing Bitwise's combined Bitcoin and Ethereum ETF to be listed and traded. According to the filing, the fund's asset allocation will closely reflect the relative market capitalizations of Bitcoin and Ethereum, with holdings limited to these two cryptocurrencies and cash reserves.

The SEC determined that the filing was substantially similar to other approved spot crypto ETFs, allowing for an expedited approval process. The agency stated, "The Commission finds good cause to approve the Proposal prior to the 30th day after the date of publication of notice of Amendment No. 126 in the Federal Register."

The development follows 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 on X that the approval of Bitwise's ETF was expected due to the precedent set by the earlier approvals.

Bloomberg Senior ETF Analyst Eric Balchunas also commented on the decision on X, stating that the decision was "news but expected." He noted that the approval process took only 45 days instead of the standard 240-day review period, suggesting a potential shift in the SEC's approach to crypto ETFs.

NYSE Arca filed the 19b-4 on November 26, 2024. 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.

The Bitwise 10 Crypto Index Fund also remains under review, designed