Bitwise Bitcoin and Ethereum ETF Receives SEC Approval
The U.S. Securities and Exchange Commission (SEC) has approved part of Bitwise Asset Management's application for a novel exchange-traded fund (ETF) that would track the two dominant cryptocurrencies, Bitcoin and Ethereum.
Balanced Digital Asset Exposure
The Bitwise Bitcoin and Ethereum ETF aims to provide investors with diversified exposure to the top digital assets, weighted by their market capitalizations. It adopts a structure similar to existing ETFs that hold Bitcoin or Ether directly.
Approval Process
The SEC has approved the so-called Form 19b-4, an interim step in the approval process. The Bitwise fund requires additional approval for its S-1 registration application before it can commence trading.
Crypto-Friendly Momentum
Bitwise submitted the joint fund proposal after the 2022 U.S. presidential election, which brought about a more crypto-supportive administration. The Republican administration has expressed intentions to implement regulations conducive to the digital asset sector.
Crypto ETF Proliferation
Investment firms are actively exploring SEC boundaries with innovative crypto ETF proposals, including those tracking memecoins. Bitwise has proposed an ETF for Dogecoin, while other applications target XRP, Solana, and Litecoin.
Success of Bitcoin ETFs
ETF products investing directly in Bitcoin have garnered significant success since their inception in 2024. These funds have accumulated over $121 billion in assets, reflecting Bitcoin's role as a potential store of value. Ether ETFs have followed suit, managing over $11 billion collectively.