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US SEC Approves Bitwise Bitcoin and Ethereum ETF
The US Securities and Exchange Commission (SEC) has approved the listing and trading of the Bitwise Bitcoin and Ethereum exchange-traded fund (ETF). This decision allows NYSE Arca to list and trade shares of the fund, which will hold both Bitcoin and Ethereum alongside cash reserves. The approval was granted on an accelerated basis, as indicated in the SEC filing released on January 30, 2025.
US SEC Approves Bitwise ETF Holding Both Bitcoin and Ethereum
According to the recent SEC filing, the SEC approved the Bitwise ETF on an accelerated basis. The approval permits NYSE Arca to list and trade the ETF, which will provide investors with direct exposure to both Bitcoin and Ethereum.
The Bitwise ETF will hold spot Bitcoin, Ethereum, and cash reserves. This structure is designed to offer diversified exposure to the two largest cryptocurrencies by market capitalization. The SEC’s approval follows a series of crypto-related ETF filings submitted by multiple financial firms in recent months.
Following the ongoing trend on crypto ETFs, a report highlighted that Grayscale filed for a spot XRP ETF with the New York Stock Exchange (NYSE). The asset manager will convert its existing XRP Trust into an ETF, which would be listed and traded on the exchange. This move comes shortly after Grayscale filed for Litecoin and Solana ETFs, signaling increasing interest in crypto investment products.
Pending S-1 Registration Required for Trading
Despite the approval of Form 19b-4, the Bitwise ETF still requires SEC clearance for its pending S-1 registration. Both steps are necessary before the fund can begin trading on the exchange.
The S-1 registration review will determine compliance with regulatory standards, including investor protection measures and transparency requirements. Bitwise Asset Management must await further approval before officially launching the ETF in the market.
Broader Regulatory Shift in Crypto ETFs
The US SEC decision reflects an evolving regulatory stance on cryptocurrency ETFs. Under the current administration, firms have submitted multiple applications to launch similar financial products. Recently, VanEck and ProShares filed for ETFs tracking assets like Litecoin, XRP, and Solana.
Conclusion
The SEC’s approval of the Bitwise Bitcoin and Ethereum ETF marks a significant milestone in the evolution of the crypto-asset market. As the regulatory landscape continues to shift, investors can expect increased opportunities to gain exposure to the growing cryptocurrency market. The Bitwise ETF’s unique structure, which combines Bitcoin and Ethereum with cash reserves, offers a diversified and potentially attractive investment opportunity for those seeking to participate in the crypto market.
FAQs
Q: What is the Bitwise Bitcoin and Ethereum ETF?
A: The Bitwise Bitcoin and Ethereum ETF is a type of exchange-traded fund (ETF) that tracks the performance of Bitcoin and Ethereum, two of the most popular cryptocurrencies in the world.
Q: What is the purpose of the ETF?
A: The ETF is designed to provide investors with direct exposure to the cryptocurrency market, allowing them to diversify their portfolios and potentially benefit from the growth of the digital asset class.
Q: How will the ETF be structured?
A: The ETF will hold a combination of spot Bitcoin, spot Ethereum, and cash reserves, offering a diversified exposure to the two largest cryptocurrencies by market capitalization.
Q: What is the significance of the SEC’s approval?
A: The SEC’s approval marks a major breakthrough in the development of the crypto-asset market, as it allows the Bitwise ETF to be listed and traded on a major exchange, providing investors with increased access to the cryptocurrency market.
