TLDR: The U.S. Securities and Exchange Commission (SEC) has fast-tracked approval for Bitwise’s Bitcoin-Ethereum ETF, allowing it to be listed and traded on NYSE Arca. This move underscores the agency’s evolving stance on cryptocurrency investment products, reflecting the broader acceptance of digital assets under the pro-crypto Trump administration. This allows traditional investors to gain exposure to both Bitcoin and Ethereum in just one ETF.
Bitwise’s Hybrid Bitcoin-Ethereum ETF Gains Momentum
The newly approved ETF will provide investors with direct exposure to Bitcoin (BTC) and Ethereum (ETH) within a single fund, with Coinbase’s custody business managing its holdings. According to the latest filing, the asset allocation reflects market capitalization proportions, currently comprising 83% Bitcoin and 17% Ethereum. These weights will be determined by multiplying each asset’s pricing benchmark by its circulating supply.
The fund’s net asset value (NAV) will be calculated daily at 4:00 p.m. ET, using real-time trade data from major exchanges.
Bloomberg senior ETF analyst Eric Balchunas commented on X (formerly Twitter) that the SEC’s rapid approval may signal an overall acceleration of crypto-related investment products, although regulatory certainty remains in flux.
A Shift in Crypto Regulation Under Trump
Bitwise’s ETF approval aligns with a larger trend of crypto-friendly policy shifts in Washington. The SEC has recently approved multiple crypto-based ETFs, including those from Nasdaq and Cboe BZX, further solidifying the role of digital assets in traditional finance.
Bitwise’s expansion into diverse crypto investment products is also notable. The firm has already applied for:
- A Dogecoin (DOGE) ETF, capitalizing on the growing institutional interest in meme-based tokens.
- An XRP ETF, filed in October 2024.
- A Solana (SOL) ETF, filed in November 2024.
Additionally, the firm has launched a Solana Staking ETP in Germany, catering to European investors eager for exposure to staking rewards.
Bitwise has pointed to these regulatory shifts as fueling the ongoing crypto bull market, which it suggests could extend through 2026 and beyond.
What’s Next for the ETF?
While the SEC has approved Bitwise’s 19b-4 application, the ETF still requires Form S-1 registration approval before trading can officially begin. The S-1 process ensures compliance with disclosure and investor protection requirements.
If fully approved, the fund will mark another significant milestone in institutional crypto adoption, paving the way for additional diversified digital asset ETFs in the near future.
Conclusion
Bitwise’s Bitcoin-Ethereum ETF represents a major step toward mainstream crypto investment accessibility. As regulatory tailwinds continue, more digital asset funds are likely to gain approval, further integrating crypto into traditional financial markets. With Washington embracing digital assets like never before, the landscape for institutional crypto investment is expanding rapidly.
While a BTC-ETH ETF may not seem like the biggest deal, it opens the door to potential “basket” ETF’s. Could Grayscale’s smart contracts trust become an ETF? What about an AI/DePin fund? A BTC-ETH ETF opens the door beyond just a single asset.