- The U.S. SEC has granted initial approval for Bitwise’s Bitcoin and Ethereum ETF, marking a significant step toward broader institutional adoption of crypto assets.
A Milestone for Bitwise and Crypto ETFs
Bitwise’s ETF, named the Bitwise Bitcoin and Ethereum ETF, will provide exposure to Bitcoin (BTC) and Ethereum (ETH) in a single fund. The assets will be weighted according to their market capitalizations, with Bitcoin comprising 83% and Ethereum 17% as of the filing date. The fund will calculate market cap by multiplying asset benchmarks by circulating supply.
Bitwise Investment Advisers will manage the ETF, with Coinbase providing custody services. Bank of New York Mellon will serve as the fund’s cash custodian, administrator, and transfer agent. The approval of Bitwise’s ETF follows the SEC’s earlier approvals of similar Bitcoin-Ethereum spot ETFs from Hashdex and Franklin Templeton on December 19.
This development comes shortly after the appointment of a new crypto-friendly acting SEC chair, indicating a potential shift in the regulator’s stance on crypto-based financial products. Bitwise initially submitted its ETF proposal in November, following Donald Trump’s election victory.
Crypto ETF Market Sees $655M in Inflows
Investor interest in cryptocurrency ETFs surged on January 30, with spot Bitcoin and Ethereum ETFs in the U.S. recording approximately $655 million in net inflows. This marks a strong rebound in demand following the SEC’s approval of Bitwise’s fund.
According to data from SoSoValue, spot Bitcoin ETFs attracted a total of $588.22 million in inflows. Leading the charge was BlackRock’s IBIT, which saw $321.5 million, followed by Fidelity’s FBTC with $209.14 million. Other notable funds, including Bitwise’s BITB and ARK 21Shares’ ARKB, collectively added $35 million in inflows. Additional contributions came from Franklin Templeton’s EZBC ($6.11 million), VanEck’s HODL ($5.97 million), and Invesco Galaxy’s BTCO ($5.24 million). Grayscale’s Mini Bitcoin Trust added $4.65 million to the total.
The cumulative net inflows for spot Bitcoin ETFs have now surpassed $40 billion, with the funds collectively managing $123.43 billion—approximately 5.94% of Bitcoin’s circulating supply.
Ethereum ETFs also performed well, recording $67.77 million in net inflows. BlackRock’s ETHA led the way with $79.86 million, followed by Fidelity’s FETH at $15.41 million and Grayscale’s Mini Ethereum Trust at $12.79 million. However, Grayscale’s Ethereum Trust saw outflows of $40.29 million, marking the only fund to report losses for the day.
Accelerated SEC Approval and Market Implications
The SEC’s approval of Bitwise’s ETF is noteworthy not only for its significance but also for the speed at which it was granted. Bloomberg ETF analyst Eric Balchunas highlighted that the SEC approved the ETF in just 45 days, a stark contrast to the typical 240-day timeline. This suggests a potential shift in the SEC’s approach to crypto-related financial products and could signal faster approvals for future filings.
Balchunas speculated that Litecoin (LTC) may be next in line for an ETF, given the regulator’s evolving stance. Meanwhile, Bloomberg Intelligence senior government analyst Nathan Dean noted that ETF issuers are actively testing the SEC’s boundaries with unique filings, including leveraged crypto ETFs and memecoin-based products, such as Bitwise’s recent spot Dogecoin (DOGE) ETF filing.
