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Highlights
- Bitwise receives initial approval for its Bitcoin-Ethereum ETF from the SEC.
- ETF tracks the spot price of Bitcoin (BTC) and Ethereum (ETH) with Coinbase custody.
- Approval follows a trend of growing crypto product acceptance under SEC’s leadership.
On January 30, the U.S. Securities and Exchange Commission (SEC) granted initial approval to Bitwise Asset Management’s exchange-traded fund (ETF), which will track the prices of Bitcoin (BTC) and Ethereum (ETH). This approval marks the first step in the ETF's journey, as the regulator accepted the fund's 19b-4 filing. However, the ETF will require further SEC approval for its Form S-1 registration before it can officially begin trading.
The Bitwise Bitcoin and Ethereum ETF will provide exposure to the spot prices of both Bitcoin and Ethereum within a single fund, with the assets weighted based on their respective market capitalizations. As of the latest filing, the fund's allocation stands at 83% Bitcoin and 17% Ethereum. The ETF will calculate market capitalization using pricing benchmarks and circulating supply data for each crypto asset.
This approval comes shortly after the appointment of a new, crypto-friendly acting chair at the SEC, suggesting a shift towards more favorable regulatory conditions for crypto assets. The approval of Bitwise’s fund follows similar greenlights for other Bitcoin-Ethereum ETFs from Hashdex and Franklin Templeton in December 2024.
The Bitwise fund will be managed by Bitwise Investment Advisers, with custody provided by Coinbase, and Bank of New York Mellon serving as the cash custodian, administrator, and transfer agent. Alongside this, Bitwise is also planning to launch ETFs for memecoins, including a Dogecoin (DOGE) ETF, which has already been filed with the SEC. The increasing number of crypto-related ETFs suggests that issuers are testing the boundaries of SEC approval, as the regulatory landscape for digital assets continues to evolve.
