Bitwise Asset Management’s exchange-traded product (ETP) tracking both Bitcoin and Ethereum has received an initial approval from the U.S. Securities and Exchange Commission (SEC). The approval marks a significant step forward for the crypto ETF, bringing it closer to trading on public exchanges.
According to a January 30 update from the SEC, the Bitwise Bitcoin and Ethereum ETF cleared its first regulatory hurdle after the commission granted “accelerated approval” for its 19b-4 filing. This approval allows the exchange to list the product, but the ETF still needs to secure final approval for its S-1 registration before it can begin trading. The S-1 filing is required for the public issuance of new securities.
The 19b-4 approval permits exchanges to list new financial products, while the S-1 registration is the final step for products to be officially issued and made available to the public.
Structure and Focus of the ETF
Bitwise first filed for the Bitcoin-Ethereum ETF in November 2024, aiming to provide investors with a simple way to gain exposure to both cryptocurrencies in a single product. The fund is designed to track the spot prices of Bitcoin and Ethereum, with the allocation based on their market capitalizations.
As of its latest filing, the ETF is weighted approximately 83% Bitcoin and 17% Ethereum. These weightings are determined by multiplying the circulating supply of each cryptocurrency by a pricing benchmark, ensuring that the fund reflects the relative size of each asset in the market.
A Milestone for Crypto ETPs
This approval marks the first crypto exchange-traded product to be approved under the leadership of the SEC’s acting chair, Mark Udeya. However, it is the third joint Bitcoin-Ethereum ETF that the SEC has greenlit, following the approval of similar products like those from Hashdex and Franklin Templeton.
In its ruling, the SEC noted that the structure of the Bitwise ETF is similar to previously approved spot Bitcoin and Ethereum ETPs. “The structure of the Trust, its operations, and the trading of its shares are substantially similar to those of the spot Bitcoin and spot Ether ETP proposals approved in prior Commission orders,” the SEC stated.
Bitwise’s Broader Crypto Ambitions
Bitwise isn’t stopping here. The firm is currently awaiting approval for two additional crypto products. One is a Dogecoin ETF, for which it filed an S-1 registration on January 29. The other is the Bitcoin Standard Corporations ETF, which will focus on investing in publicly traded companies that hold over 1,000 BTC in their corporate treasuries.
As the SEC’s stance on crypto investment products evolves, many issuers are hoping that under the current administration, led by President Donald Trump, the SEC will be more open to a wider range of crypto-focused ETFs. This has encouraged firms to expand their offerings beyond Bitcoin and Ethereum.
For example, Tuttle Capital has filed for ten leveraged ETFs targeting a variety of altcoins, including XRP, Solana (SOL), and even meme coins like Official Trump (TRUMP) and Melania (MELANIA). Other firms, like Grayscale and Canary, are also exploring altcoin-based ETFs, signaling a growing push to diversify the crypto investment landscape.