The U.S. Securities and Exchange Commission (SEC) approved Bitwise's application for an exchange-traded fund (ETF) on NYSE Arca, enabling share trading operations based on Bitcoin and Ethereum.
New SEC Approval
On January 30, 2025, the SEC approved a fund that allows investment in Bitcoin and Ethereum while maintaining cash reserves, giving investors market cap exposure to these leading cryptocurrencies.
Rising Institutional Investor Interest
The approval of Bitwise demonstrates growing institutional interest in digital assets. Additionally, Grayscale applied for a spot XRP ETF and proposed Litecoin and Solana ETFs. The ETF requires S-1 registration approval to commence trading.
Crypto Market Development
The regulatory framework for digital assets continues to evolve. VanEck and ProShares are also seeking authorization for ETFs that track Litecoin and XRP assets. Bitwise is expanding its product range with an application for a Dogecoin ETF. Bitcoin's price rose by 1.13% to $104,612.69, and Ethereum increased by 4% to $3,269 as market sentiment improved following the approval.
The SEC's approval for Bitwise indicates growing support for cryptocurrency ETFs, creating new opportunities for investors and highlighting further development in the digital asset market.
