SEC Expedites Approval for Bitwise Bitcoin and Ethereum ETF

January 31, 2025 by Bena Ilyas

• SEC approved Bitwise Bitcoin and Ethereum ETF for NYSE Arca after a 45-day review, which was faster than the typical 240 days.
  
• Bitwise ETF allocates funds across Bitcoin, Ethereum, and cash, using CME CF benchmarks to calculate daily NAV.
  
• Bitwise filed for Solana, XRP, and Dogecoin ETFs, expanding offerings in response to growing institutional interest.
  

The U.S. Securities and Exchange Commission (SEC) approved the Bitwise Bitcoin and Ethereum ETF on Thursday, January 30, 2024, allowing its listing on NYSE Arca. The hybrid ETF provides investors direct exposure to Bitcoin (BTC) and Ethereum (ETH) within a single fund, with Coinbase Custody overseeing asset management and security.

Bloomberg senior ETF analyst Eric Balchunas commented on the rapid approval, suggesting it could indicate a more proactive SEC. He noted the approval process took just 45 days, a significant reduction from the typical 240-day review period. “I really want to interpret this as a sign the new SEC will be faster, but no way to know really,” he posted on X.

Bitwise’s Growing Influence in the Crypto ETF Market

The Bitwise ETF will hold Bitcoin, Ethereum, and cash, with asset allocations reflecting market capitalization. The fund’s net asset value (NAV) will be calculated daily using CME CF Bitcoin and Ether benchmarks. This move follows approvals for Hashdex and Franklin Templeton ETFs in December, signaling a growing industry-friendly stance by the SEC.

Bitwise’s decision to allow investors to buy or redeem shares in Creation Units of 10,000 shares per unit aims to provide a streamlined, cost-efficient investment vehicle. The ETF is structured to reflect the combined value of Bitcoin and Ethereum, making it an attractive choice for institutional investors seeking exposure to the two largest cryptocurrencies.

NYSE Arca filed the 19b-4 application on November 26, 2024. The SEC accelerated its approval following a public comment period and revisions on January 21, 2025. The move bolsters Bitwise’s growing influence in the crypto ETF market, positioning it as a key player in institutional crypto adoption.

Bitwise has also filed applications for Solana (SOL), XRP (XRP), and Dogecoin (DOGE) ETFs. However, the SEC’s willingness to approve a meme coin ETF remains uncertain due to its speculative nature. The outcome of these filings will shape the future of alternative crypto asset investment products.

Meanwhile, the Bitwise 10 Crypto Index Fund remains under review. This fund aims to track the performance of the top cryptocurrencies based on market capitalization. The asset allocation includes 83% Bitcoin and 17% Ethereum, with weights determined by multiplying each asset’s pricing benchmark by its circulating supply.

Bitwise continues expanding its crypto investment offerings, launching actively traded Bitcoin and Ethereum ETFs. The firm recently filed for a Dogecoin ETF, responding to rising institutional interest in meme-based assets. In late 2024, Bitwise also applied for XRP and Solana ETFs, broadening its scope beyond Bitcoin and Ethereum.

Read More: Bitcoin and Ethereum Dominate Crypto Narrative as Prices Surge

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