US SEC Approves Bitwise’s Combined Bitcoin and Ethereum ETF

Highlights:

• SEC grants accelerated approval for Bitwise Bitcoin and Ethereum ETF, pending S-1 clearance.
• Bitcoin and Ethereum prices rise after SEC’s approval of Bitwise ETF.
• Bloomberg analyst hopes faster SEC approval indicates more efficient future crypto ETF reviews.

On January 30, the U.S. Securities and Exchange Commission (SEC) granted “accelerated approval” for NYSE Arca to list and trade Bitwise Asset Management’s Bitcoin and Ethereum exchange-traded fund (ETF). This hybrid ETF provides exposure to the spot prices of BTC and Ether in a single fund, weighted by their market capitalizations. As of the filing date, Bitcoin accounted for 83% and Ether 17%.

The approval was granted just under two weeks after the SEC appointed a new crypto-friendly acting chair, Mark Uyeda. Bitwise submitted the joint ETF paperwork to regulators in November following Donald Trump’s election victory. Bitwise Investment Advisers will manage the fund, Coinbase will provide custody services, and Bank of New York Mellon will handle cash custody, administration, and transfers.

The SEC has approved NYSE Arca’s proposed rule change to list and trade shares of the Bitwise Bitcoin and Ethereum ETF. The ETF will hold spot Bitcoin and Ethereum based on their market capitalization weight. https://t.co/OCfu6K5XDr

— Wu Blockchain (@WuBlockchain) January 30, 2025

S-1 Registration Still Required Before Trading Can Begin

Although the SEC approved Form 19b-4, the Bitwise ETF still needs clearance for its pending S-1 registration. Both approvals are essential before the fund can start trading on the exchange. The S-1 review will focus on ensuring the ETF complies with regulatory standards, including transparency and investor protection.

In the Thursday filing, the SEC wrote:

“In particular, the Commission finds that the Proposal is consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the Exchange’s rules be designed to ‘prevent manipulative acts and practices’ and, ‘in general, to protect investors and the public interest.”

Following the announcement, Bitcoin and Ethereum have seen price changes. At the time of writing, Bitcoin is priced at $104,512, reflecting a 1.1% increase over the past week, while Ethereum is trading at $3,220, up 3% in the last 24 hours.

Bloomberg Analyst Reacts to Fast SEC Approval of Bitwise’s Bitcoin and Ethereum ETF

Bloomberg ETF analyst Eric Balchunas commented that the SEC’s approval of the Bitwise Bitcoin and Ethereum ETF was “news but expected.” He expressed optimism that the quicker approval process signaled a more efficient approach by the financial regulator for future ETF submissions. However, he advised against making broad assumptions based on just one instance.

Balchunas 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.”

Several companies have submitted filings to list new crypto products with U.S. regulators following a shift in the regulatory landscape under the Trump administration. For example, former SEC Chair Gary Gensler was reluctant to approve Bitcoin ETF trading until a court mandate forced action. 

On January 30, Bitwise predicted the current bull market could extend into 2026, with Washington increasingly supporting digital assets. “The path to full mainstream crypto adoption is clearer than ever,” it said. Earlier this week, Bitwise filed an S-1 with the SEC for a spot Dogecoin ETF.