Bitwise Bitcoin and Ethereum ETF Receives Initial Approval from SEC

Bitwise Asset Management’s exchange-traded product tracking Bitcoin and Ethereum has received the initial nod from the United States Securities and Exchange Commission.

The Bitwise Bitcoin and Ethereum ETF has cleared its first regulatory hurdle after its 19b-4 filing was granted “accelerated approval,” according to a Jan. 30 update from the commission. The ETF now awaits the regulator’s decision on its S-1 registration, the final step before trading can commence.

ETF Structure and Allocation

Bitwise filed for the ETF in November with the goal of offering investors exposure to Bitcoin and Ethereum within a single product. The fund is designed to track the spot prices of Bitcoin and Ethereum, with asset weightings based on their relative market capitalizations. As of the latest filing, the allocation stood at approximately 83% Bitcoin and 17% Ethereum.

The ETF will calculate these weightings by multiplying each asset’s circulating supply with a pricing benchmark. This approval marks the third joint Bitcoin and Ethereum ETF to receive regulatory approval.

Future Outlook

While this is the first crypto ETP approval under the new SEC administration led by acting chair Mark Udeya, issuers are hopeful that the regulator will be more open to a broader range of crypto investment products. Bitwise is currently awaiting approval for two other products, including a Dogecoin ETF and a Bitcoin Standard Corporations ETF.

Issuers are exploring ETFs beyond Bitcoin and Ethereum, with firms like Tuttle Capital filing for leveraged ETF products tracking altcoins like XRP, Solana, and others. Grayscale and Canary have also filed for altcoin-based ETFs.

The approval of the Bitwise Bitcoin and Ethereum ETF signals a positive step forward for the crypto industry, as more diversified investment products become available to investors.