Bitwise Bitcoin and Ethereum ETF receives SEC approval

The U.S. Securities and Exchange Commission (SEC) has granted initial approval to Bitwise Asset Management’s exchange-traded fund (ETF) that tracks Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).

This approval was announced on January 30, marking a significant step forward for the fund, which aims to provide exposure to both cryptocurrencies weighted by their market capitalisations.

The ETF is structured to reflect approximately 83% Bitcoin and 17% Ethereum based on their respective market values.

Bitwise’s ETF will calculate the market capitalisation of these assets by multiplying their current prices by circulating supplies.

This development comes shortly after the SEC appointed a new crypto-friendly acting chair, which may influence future regulatory decisions.

Bitwise submitted its application for this joint ETF in November 2024, following the election of Donald Trump, who has shown a more favorable stance toward digital assets.

The fund will be managed by Bitwise Investment Advisers, with Coinbase providing custody services and Bank of New York Mellon acting as the cash custodian and administrator.

This ETF approval is notable as it represents the third joint Bitcoin and Ethereum spot ETF sanctioned by the SEC, following approvals for similar products from Hashdex and Franklin Templeton in December 2024.

Bitwise is also exploring the launch of ETFs focused on memecoins, having filed for a spot Dogecoin (CRYPTO:DOGE) product recently.

Commenting on the approval, Bloomberg ETF analyst James Seyffart noted that issuers are pushing the SEC's boundaries with innovative filings.

The approval reflects a growing acceptance of crypto investment products in the regulatory landscape, indicating a potential shift towards mainstream adoption of digital assets.

“The path to full mainstream crypto adoption is clearer than ever,”  stated by Bitwise, emphasising optimism about the future of cryptocurrency investments.

At the time of reporting, the Bitcoin (BTC) price was $103,996 and the Ethereum (ETH) price was $3,215.92.