Bitwise’s Bitcoin and Ethereum ETF Clears First SEC Hurdle

Bitwise Asset Management has taken a major step toward launching its Bitcoin and Ethereum exchange-traded fund (ETF), with the U.S. Securities and Exchange Commission (SEC) granting initial approval on January 30, 2025. The approval, which applies to the fund’s Form 19b-4 filing, is the first significant milestone in the process of making the ETF available for public trading. However, Bitwise still awaits a final decision on its Form S-1 registration application before the fund can officially go live.

A Dual-Asset ETF Tracking Bitcoin and Ethereum

The proposed Bitwise Bitcoin and Ethereum ETF aims to offer investors exposure to the spot prices of Bitcoin (BTC) and Ethereum (ETH) in a single fund. The fund will be weighted according to the market capitalization of each asset, which as of the filing date, was 83% Bitcoin and 17% Ethereum. The ETF will calculate market cap by multiplying the current circulating supply of each asset by its respective price benchmark.

This ETF will provide a streamlined way for investors to gain exposure to two of the largest cryptocurrencies by market cap, without having to manage the complexities of holding the assets directly. As of now, Bitcoin is valued at approximately $104,368 per BTC, while Ethereum is priced at $3,235 per ETH.

The Path to Approval and Strategic Partnerships

The SEC’s approval of Bitwise’s Form 19b-4 filing comes shortly after the appointment of a new, crypto-friendly acting chair to lead the agency. This move has sparked optimism in the crypto community that the regulatory landscape may be shifting toward greater acceptance of digital assets.

While this initial approval is a significant step forward, Bitwise still needs the SEC’s approval of a pending Form S-1 registration application for the ETF to officially launch. If approved, the fund would be managed by Bitwise Investment Advisers, with Coinbase serving as the custodian for the digital assets. Bank of New York Mellon would take on the role of cash custodian, administrator, and transfer agent.

The Bitwise ETF is one of several recent approvals in the growing space of crypto ETFs. On December 19, 2024, the SEC also gave the green light to similar Bitcoin and Ethereum spot ETFs from Hashdex and Franklin Templeton, signaling a trend toward broader acceptance of cryptocurrency-based investment products.

A Growing Trend in Crypto ETFs

Bitwise is not stopping with just Bitcoin and Ethereum. The firm has also made headlines with its filing for a spot Dogecoin (DOGE) ETF, submitted on January 28, 2025. This move highlights Bitwise’s expanding portfolio in the cryptocurrency ETF space, as well as its belief in the growing mainstream acceptance of digital assets.

Bloomberg ETF analyst James Seyffart recently commented that ETF issuers are "testing the limits" of what the SEC will allow, citing the rise in filings for leveraged crypto ETFs and even memecoin ETFs. Similarly, Nathan Dean, a senior government analyst at Bloomberg Intelligence, noted that issuers are pushing the boundaries with unique filings, as they seek to capitalize on the burgeoning demand for crypto-focused investment products.

A Bullish Outlook for the Crypto Market

In a statement released on January 30, 2025, Bitwise expressed its optimism about the future of the cryptocurrency market, predicting that the current bull market could continue into 2026 and beyond. The firm pointed to the growing acceptance of digital assets in Washington, D.C., as a key factor driving the long-term growth of the crypto industry.

“The path to full mainstream crypto adoption is clearer than ever,” Bitwise said, echoing sentiments that the regulatory environment and investor interest are converging to create a favorable landscape for the continued expansion of crypto-based financial products.

Conclusion

Bitwise’s Bitcoin and Ethereum ETF is poised to become a significant player in the rapidly evolving crypto investment space. With the SEC’s initial approval, the firm is one step closer to launching a product that would offer investors a unique opportunity to gain exposure to both Bitcoin and Ethereum in a single, regulated fund. As the crypto market continues to mature and gain acceptance, the approval of such ETFs could signal a turning point in the mainstream adoption of digital assets.