The U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of the Bitwise Bitcoin and Ethereum exchange-traded fund (ETF). This decision allows NYSE Arca to list and trade shares of the fund, which will hold both Bitcoin and Ethereum alongside cash reserves. The approval was granted on an accelerated basis, as indicated in the SEC filing released on January 30, 2025.

US SEC Approves Bitwise ETF Holding Both Bitcoin and Ethereum

According to the recent filing, the SEC approved the Bitwise ETF on an accelerated basis. The approval permits NYSE Arca to list and trade the ETF, which will provide investors with direct exposure to both Bitcoin and Ethereum.

The Bitwise ETF will hold spot Bitcoin, Ethereum, and cash reserves. This structure is designed to offer diversified exposure to the two largest cryptocurrencies by market capitalization. The SEC’s approval follows a series of crypto-related ETF filings submitted by multiple financial firms in recent months.

Following the ongoing trend on crypto ETFs, a report highlighted that Grayscale filed for a spot XRP ETF with the New York Stock Exchange (NYSE). The asset manager will convert its existing XRP Trust into an ETF, which would be listed and traded on the exchange. This move comes shortly after Grayscale filed for Litecoin and Solana ETFs, signaling increasing interest in crypto investment products.

Pending S-1 Registration Required for Trading

Despite the approval of form 19b-4, the Bitwise ETF still requires SEC clearance for its pending S-1 registration. Both steps are necessary before the fund can begin trading on the exchange.

The S-1 registration review will determine compliance with regulatory standards, including investor protection measures and transparency requirements. Bitwise Asset Management must await further approval before officially launching the ETF in the market.

In the Thursday filing, the US SEC wrote,

“In particular, 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 in Crypto ETFs

The US SEC decision reflects an evolving regulatory stance on cryptocurrency ETFs. Under the current administration, firms have submitted multiple applications to launch similar financial products. Recently, VanEck and ProShares filed for ETFs tracking assets like Litecoin, XRP, and Solana.

The approval of the Bitwise ETF follows prior approvals in December 2024 for crypto index ETFs from firms such as Hashdex and Franklin Templeton. 

It is worth noting that earlier in the week, the asset management firm submitted an S-1 filing with the US SEC for a spot Dogecoin ETF. Bitwise confirmed that the ETF’s Net Asset Value (NAV) will be based on the Dogecoin-Dollar settlement benchmark from CF trading.

Bitcoin and Ethereum prices have shown movement following the announcement. At press time, Bitcoin is trading at $104,612.69 with a 1.13% increase over the past week, while Ethereum stands at $3,269, gaining 4% in the last 24 hours.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.