"SEC Speeds Up Crypto ETF Approval: Bitwise's Bitcoin & Ethereum ETF Gets Green Light"

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), signaling a potentially faster review process for future applications of similar cryptocurrency ETFs.

The SEC confirmed the initial approval for Bitwise's combined Bitcoin and Ethereum ETF, following a similar approval for Hashdex and Franklin Templeton's ETFs in December 2024. The SEC determined that Bitwise's filing was substantially similar to other approved spot crypto ETFs, allowing for an expedited approval process.

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 other cryptocurrencies such as Dogecoin (DOGE), XRP, and Solana (SOL).

The Bitwise 10 Crypto Index Fund remains under review, designed to track the performance of the top cryptocurrencies. The approval of Bitwise's ETF is a significant development in crypto investments, providing investors with direct exposure to major cryptocurrencies and showcasing a trend towards greater acceptance of digital assets by regulatory bodies.

As the SEC's stance on digital assets evolves, the approval of Bitwise's ETF aligns with a broader trend of acceptance towards crypto investment products. This follows the listing approvals of multiple ETFs, including those from Nasdaq and Cboe BZX. The approval of Bitwise's ETF may indicate a more favorable environment for crypto-related financial products under the current SEC leadership.

The Bitwise ETF is structured to provide transparency and reliability, with asset weights determined by multiplying each asset's pricing benchmark by its circulating supply. The fund's net asset value will be calculated daily using real-time trade data from major exchanges, promoting investor confidence.

The approval of Bitwise's ETF is not just a technical milestone; it's a reflection of shifting market dynamics. The firm has suggested that the increased regulatory support could bolster the current bull run, potentially extending it into 2026 and beyond. As market participants