The U.S. Securities and Exchange Commission (SEC) has expedited approval for Bitwise Asset Management's Bitcoin and Ethereum exchange-traded fund (ETF). This decision allows the ETF to be listed and traded on NYSE Arca, marking a major milestone for crypto-based investment products.
BREAKING:
— Ash Crypto (@Ashcryptoreal) January 31, 2025
THE 🇺🇸 U.S. SEC HAS APPROVED
BITWISE'S COMBINED BITCOIN-
ETHEREUM ETF. pic.twitter.com/idQQQvaGGF
How the ETF Works: Asset Allocation & Custody
The Bitwise Bitcoin-Ethereum ETF offers investors direct exposure to both Bitcoin (BTC) and Ethereum (ETH) within a single fund. The asset allocation follows a market capitalization-weighted model, with approximately 83% Bitcoin and 17% Ethereum. Coinbase's custody business will oversee the holdings, ensuring secure storage of the assets. The ETF’s net asset value (NAV) will be calculated daily based on aggregated real-time trading data from major exchanges.
Previously, the commission had approved similar dual Bitcoin-Ethereum ETFs from Hashdex and Franklin Templeton in December 2024. The acceleration of Bitwise's ETF approval suggests that regulators may be moving toward a more inclusive approach to digital assets within traditional financial markets.
The decision has been met with optimism in the crypto community. Bloomberg senior ETF analyst Eric Balchunas commented that this could indicate a more responsive SEC under its current leadership.
News but expected. Even Gensler’s SEC would approve these. That said, they approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster but no way to know really. Litecoin on deck, know more soon https://t.co/xqlXusHuyN
— Eric Balchunas (@EricBalchunas) January 31, 2025
Market participants believe that the approval signals growing regulatory confidence in cryptocurrency-backed financial products.
Rapidly heading towards full index-based & actively managed spot crypto ETFs…
— Nate Geraci (@NateGeraci) January 31, 2025
This is simply first step. https://t.co/d1ilv4ViEr
Bitwise’s Expansion into Crypto ETFs
Bitwise has been actively expanding its range of crypto-based investment products. Alongside the Bitcoin-Ethereum ETF, the firm has also filed for a Dogecoin (DOGE) ETF amid increasing institutional interest in meme-based assets. Other filings include an XRP ETF (October 2024) and a Solana (SOL) ETF (November 2024), further diversifying their offerings.
The approval of Bitwise’s Bitcoin-Ethereum ETF is a significant step in integrating cryptocurrencies into mainstream financial products. As regulatory frameworks continue to evolve, investors can expect more opportunities to engage with digital assets through ETFs, providing an accessible and regulated avenue for crypto exposure.
HODL Team
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