SEC Approves Bitwise Bitcoin-Ethereum ETF
The US Securities and Exchange Commission (SEC) has approved the Bitwise Bitcoin and Ethereum exchange-traded fund (ETF), a landmark decision allowing NYSE Arca to list and trade shares. This dual-crypto ETF will hold Bitcoin, Ethereum, and cash reserves, providing diversified exposure to the leading cryptocurrencies. The approval, granted on an accelerated basis (as detailed in the January 30, 2025 SEC filing here), follows a wave of similar filings from other financial firms.
US SEC Approves Bitwise Dual-Crypto ETF
The SEC's approval signifies a shift in the regulatory landscape for crypto ETFs. The Bitwise ETF offers investors direct exposure to both Bitcoin and Ethereum, two of the largest cryptocurrencies by market capitalization. This structure is designed for diversification within the crypto market.
Grayscale's XRP ETF Filing
This approval follows other developments in the crypto ETF space. For example, a recent report indicated that Grayscale has filed for a spot XRP ETF with the NYSE, aiming to convert its existing XRP Trust into an ETF. This, along with filings for Litecoin and Solana ETFs, highlights growing institutional interest in crypto investment vehicles.
Pending S-1 Registration
While the SEC has approved Form 19b-4, Bitwise still requires SEC clearance for its pending S-1 registration before trading can commence on the exchange. This further review will assess compliance with regulatory standards, ensuring investor protection and transparency. Bitwise awaits final approval before launch.
In the Thursday filing, the SEC stated: "The Commission finds that the Proposal is consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the Exchange’s rules be designed to ‘prevent manipulative acts and practices’ and, ‘in general, to protect investors and the public interest."
Broader Regulatory Shift
The Bitwise ETF approval builds upon previous approvals in December 2024 for crypto index ETFs from Hashdex and Franklin Templeton. This reflects a more accommodating regulatory stance towards crypto ETFs. Other firms, including VanEck and ProShares, have also submitted applications for ETFs tracking various cryptocurrencies like Litecoin, XRP, and Solana.
Earlier this week, Bitwise also filed an S-1 for a spot Dogecoin ETF with the SEC. Bitwise confirmed that the ETF's Net Asset Value (NAV) will be based on the Dogecoin-Dollar settlement benchmark from CF Trading. At press time, Bitcoin is trading at $104,612.69 (up 1.13% week-over-week), while Ethereum is at $3,269 (up 4% in the last 24 hours).
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