Bitwise Asset Management has received initial approval from the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded product on Bitcoin and Ethereum. This approval marks an important step in the development of cryptocurrency investment tools.
SEC Approval
On January 30, the SEC granted 'accelerated approval' for Bitwise’s 19b-4 filing, marking a regulatory milestone. The final step before trading can begin is the SEC’s decision on the S-1 registration, required for offering new securities to the public.
Product Details
The ETF filing, submitted in November 2024, aims to provide investors exposure to Bitcoin and Ethereum within a single product. The fund tracks spot prices of both assets with allocations based on market capitalization. As of its most recent filing, the ETF's composition was approximately 83% Bitcoin and 17% Ethereum.
Adoption Prospects
This approval is particularly noteworthy as it marks the first crypto ETP approved under the SEC’s new leadership, led by Acting Chair Mark Uyeda. It also represents the third joint Bitcoin and Ethereum ETF to receive regulatory approval. Building on their success in 2024, U.S. ETF issuers are hopeful for a wider range of crypto investment products under President Donald Trump’s administration.
The successful approval from the SEC for Bitwise underscores the potential for further expansion of cryptocurrency investment tools. This initiative may open new opportunities for investors and bolster confidence in crypto products.
