TLDR
Bitwise’s combined Bitcoin-Ethereum ETF received initial SEC approval through 19b-4 filing, with final S-1 registration pending
The fund will be weighted based on market cap: 83% Bitcoin and 17% Ethereum
This is the third joint Bitcoin-Ethereum ETF approved under the new SEC administration led by Mark Udeya
Bitwise has also filed for other crypto ETFs including Dogecoin and Bitcoin Standard Corporations
The product will use Coinbase as custodian and calculate daily NAV at 4:00 PM ET
The United States Securities and Exchange Commission (SEC) has granted initial approval to Bitwise Asset Management’s combined Bitcoin and Ethereum exchange-traded fund (ETF). The January 30 update confirmed that the product’s 19b-4 filing received “accelerated approval,” marking a key milestone in bringing this innovative investment vehicle to market.
The approval allows NYSE Arca to list and trade the new financial product, though the fund still requires SEC approval of its S-1 registration before trading can begin. This final step will evaluate the fund’s compliance with disclosure and investor protection requirements.
Bitwise’s proposed ETF aims to give investors exposure to both Bitcoin and Ethereum within a single investment product. The fund will track the spot prices of both cryptocurrencies, with holdings weighted according to their relative market capitalizations.
Based on the latest filing, the fund will allocate approximately 83% to Bitcoin and 17% to Ethereum. These weightings will be determined by multiplying each asset’s circulating supply with established pricing benchmarks, allowing the allocations to adjust as market values change.
Coinbase’s custody business will oversee the fund’s holdings, providing secure storage for the underlying cryptocurrencies. The fund’s net asset value will be calculated daily at 4:00 PM Eastern Time, using price benchmarks that compile real-time trading data from major cryptocurrency exchanges.
This marks the third joint Bitcoin and Ethereum ETF to receive approval under the new SEC administration, currently led by acting chair Mark Udeya. The regulator noted that the structure of Bitwise’s fund closely mirrors previously approved products from Hashdex and Franklin Templeton.
The SEC’s decision cited these similarities in its approval document, stating,
“The structure of the Trust, the terms of its operation and the trading of its Shares, and the representations in the Exchange’s amended filing are substantially similar to those of the spot bitcoin and spot ether ETP proposals approved in prior Commission orders.”
Bitwise filed for this ETF in November 2024, amid growing interest in cryptocurrency investment products. The company has been actively expanding its lineup of crypto-based investment vehicles, with several other proposals currently under review.
On January 29, Bitwise submitted an S-1 filing for a Dogecoin ETF, reflecting increased institutional interest in meme-based tokens. The company has also proposed the Bitcoin Standard Corporations ETF, which would invest in publicly traded companies holding over 1,000 BTC in their corporate treasuries.
The asset manager’s expansion includes previous applications for an XRP ETF in October 2024 and a Solana ETF in November 2024, demonstrating their commitment to diversifying beyond the two largest cryptocurrencies.
Other investment firms have also begun exploring ETFs for various cryptocurrencies. Tuttle Capital has filed for ten leveraged ETF products tracking different altcoins, including XRP, Solana, Official Trump, and Melania Meme tokens. Grayscale and Canary have likewise submitted applications for altcoin-based ETFs.
Bloomberg senior ETF analyst Eric Balchunas commented on the approval on social media platform X, noting the expedited nature of the decision while expressing uncertainty about whether this indicates a broader shift in SEC review timelines.
News but expected. Even Gensler’s SEC would approve these. That said, they approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster but no way to know really. Litecoin on deck, know more soon https://t.co/xqlXusHuyN
— Eric Balchunas (@EricBalchunas) January 31, 2025
As of the latest market data from CoinGecko, Bitcoin is trading at $104,331, showing a slight decrease of 0.2%, while Ethereum has risen 1.2% to $3,234.15.
The Trump administration’s SEC has shown increased openness to cryptocurrency investment products, leading to speculation about potential approvals for a broader range of digital asset vehicles. This regulatory environment has encouraged investment firms to explore diverse cryptocurrency product offerings.
Market observers are watching closely as Bitwise’s combined ETF moves through its final regulatory steps. The S-1 registration process will determine when investors can access this new investment option that combines exposure to the two largest cryptocurrencies by market capitalization.
