The US Securities and Exchange Commission (SEC) has approved a key part of an application for a new exchange-traded fund (ETF) that would track Bitcoin and Ethereum, the two largest cryptocurrencies.
Bitwise Asset Management’s Bitcoin and Ethereum ETF aims to provide investors with exposure to both digital assets, weighted by their respective market capitalizations. The fund’s structure will be similar to existing ETFs that directly hold either Bitcoin or Ether.
The SEC has approved the fund’s 19b-4 filing, an essential step in the approval process. However, Bitwise still requires the SEC’s clearance for its S-1 registration application, which is necessary before trading can commence.
Bitwise Bitcoin and Ethereum ETF
The “Bitwise Bitcoin and Ethereum ETF” will offer exposure to Bitcoin (BTC) and Ether (ETH) in a single fund, weighted by their relative market capitalizations—83% BTC and 17% ETH as of the filing date.
The ETF will determine market capitalisation by multiplying pricing benchmarks by circulating supply, according to the filing.
Approval comes less than two weeks after a crypto-friendly acting chair took over the SEC.
Commissioner Mark Uyeda took over as acting head of the SEC while the agency awaits Senate confirmation of President Donald Trump’s nominee for the permanent role, Paul Atkins.
Bitwise Investment Advisers will manage the fund, with Coinbase providing custody and Bank of New York Mellon serving as the cash custodian, administrator, and transfer agent.
Crypto ETFs boom after Trump’s return
Bitwise submitted the application for the dual crypto ETF in November, shortly after the US presidential election.
The election saw Donald Trump, who has expressed a more favorable stance toward the cryptocurrency industry, return to office.
The administration has pledged to introduce supportive regulations to position the US as a leading hub for digital assets.
The SEC has received increasing numbers of ETF proposals from investment firms seeking to expand the range of crypto-based financial products.
Bloomberg analyst Nathan Dean noted that issuers are “probing the SEC’s boundaries,” with some firms even filing applications for ETFs based on meme coins.
Bitwise has proposed an ETF tracking Dogecoin, a cryptocurrency known for its volatile price movements influenced by social media trends.
Additionally, the SEC has received applications for ETFs tracking assets like XRP, Solana, and Litecoin, which claim to offer various forms of utility beyond speculation.
The launch of US-based Bitcoin ETFs in early 2024 was met with strong investor interest.
The group of ETFs investing directly in Bitcoin—including one from Bitwise—has accumulated more than $121 billion in total assets.
Ether-based ETFs followed later, with more than $11 billion in assets under management so far.
The strong demand for these products reflects the growing role of cryptocurrencies in investment portfolios, despite ongoing debates over their classification and long-term value proposition.
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