Bitwise Proposes Bitcoin-Ethereum Mixed ETF to SEC, Aims for Balanced Crypto Exposure

Bitwise Asset Management, a prominent player in the Bitcoin ETF space, has taken another bold step towards expanding its product offerings. The company has officially proposed a Bitcoin-Ethereum-based spot ETF to the U.S. Securities and Exchange Commission (SEC), following the success of its Bitcoin ETF options product approved for trade just last week.

According to the S-1 filing submitted on November 26, Bitwise’s new ETF would combine exposure to both Bitcoin (BTC) and Ethereum (ETH), the two largest cryptocurrencies by market capitalization. The proposal, which aims to provide balanced access to both assets, was filed by NYSE Arca to list the product, known as a Bitwise Exchange-Traded Product (ETP).

Aiming for Balanced Crypto Exposure

The goal of the new ETF is to offer investors simplified access to Bitcoin and Ethereum through a single fund. Bitwise’s decision to create an ETF that holds both spot Bitcoin and Ether—weighted by market capitalization—reflects the growing desire among investors for diversified exposure to the leading cryptocurrencies.

Both Bitcoin and Ethereum currently make up more than 70% of the total crypto market capitalization, which stands at approximately $2.2 trillion. With the new product, Bitwise is looking to capitalize on the massive potential of these assets while giving investors an easier way to add them to their portfolios.

“Bitcoin and Ethereum aren’t competitors, any more than gold and tech stocks are competitors,” said Matt Hougan, Chief Investment Officer of Bitwise, emphasizing the complementary nature of the two assets. With Ethereum's dominance in decentralized finance (DeFi) and Bitcoin's status as the digital gold standard, both are poised to become key assets for institutional and retail investors alike.

Bitwise Continues to Lead in Crypto ETFs

Bitwise, which issued one of the first Bitcoin spot ETFs earlier this year, has seen significant success with its investment products. Its Bitcoin ETF, BITB, which launched earlier in 2024, has already attracted over $2.1 billion in inflows, making it the fourth-largest Bitcoin ETF issuer in the market.

In addition to its Bitcoin ETF, Bitwise has also been at the forefront of the crypto ETF revolution. In July 2024, the company joined the ranks of financial giants like BlackRock and Fidelity in launching an Ethereum spot ETF. The product, known as ETHW, has garnered $390 million in inflows, making it one of the top Ethereum-based ETFs, although still trailing behind Fidelity’s FETH ($707 million) and iShares Ethereum Trust ETF (ETHA) ($1.8 billion).

A Growing Demand for Crypto ETFs

The market for crypto-backed ETFs has been rapidly expanding, with demand surging as more institutional and retail investors look for regulated and accessible ways to gain exposure to digital assets. Bitwise’s proposal for a Bitcoin-Ethereum mixed ETF is a strategic move to capitalize on this growing interest, allowing investors to bet on the continued success of both the largest cryptocurrencies.

As the SEC reviews the proposal, the potential launch of this new ETF could further cement Bitwise’s position as a leading player in the cryptocurrency investment space. With Bitcoin and Ethereum continuing to dominate the market, the ETF could offer an efficient solution for investors seeking balanced exposure to the crypto market’s heavyweights.