Bitwise Bitcoin & Ethereum ETF: SEC Approval Signals Crypto Milestone

SEC Grants Initial Nod to Bitwise’s Bitcoin and Ethereum ETF: A New Milestone for Crypto Adoption

The journey toward broader acceptance of cryptocurrencies in mainstream markets took a promising step on January 30, as the United States Securities and Exchange Commission (SEC) provided preliminary approval for Bitwise Asset Management’s latest exchange-traded fund (ETF). This innovative product, designed to track the value of the two largest cryptocurrencies—Bitcoin (BTC) and Ethereum (ETH)—aims to integrate the digital assets into a single fund, weighted by their respective market capitalizations.

For Bitwise, this marks a critical milestone, but it’s only the beginning of a larger process. The preliminary approval granted by the SEC is based on the approval of the fund’s Form 19b-4, which outlines key mechanics and intentions behind the ETF. Now, Bitwise awaits the regulator’s green light on its pending registration application, a crucial step outlined in Form S-1, to officially launch the fund for trading. According to regulatory filings, this ETF will offer investors exposure to the spot prices of both Bitcoin and Ethereum, weighted proportionally to their market sizes. At the time of filing, Bitcoin made up 83% of the weighting, with Ethereum accounting for the remaining 17%, reflecting their relative dominance in the crypto landscape.

The methodology behind the fund’s structure provides transparency and simplicity. As detailed in the filing, the relative market capitalizations of Bitcoin and Ethereum will be calculated by multiplying their respective pricing benchmarks by their current circulating supplies. This straightforward approach enables investors to gain balanced exposure to these flagship cryptocurrencies in a single product, reducing complexities and opening up crypto investments to more traditional investor bases.

This SEC approval comes at an intriguing time, signaling a potential shift in regulatory attitudes toward digital assets. Less than two weeks prior, a newly appointed acting SEC chair known for being crypto-friendly assumed leadership, further raising expectations for constructive regulatory advancements. Bitwise’s filing came shortly after Donald Trump’s election victory in November, highlighting how industry participants are taking proactive measures to align with shifting policy environments.

The operational framework for the “Bitwise Bitcoin and Ethereum ETF” also reflects a robust and secure setup. Coinbase, one of the leading cryptocurrency exchange platforms, will act as the custodian for the fund’s assets. Simultaneously, the Bank of New York Mellon will provide crucial services, including cash custody, fund administration, and transfer agency. This alignment with established financial institutions underscores the growing maturity and integration of cryptocurrency investments into traditional financial ecosystems.

Notably, the Bitwise ETF becomes the third joint Bitcoin and Ethereum spot fund to receive approval from the SEC. This follows the regulator’s decision in December to greenlight similar ETFs from Hashdex and Franklin Templeton. The move signals a broader trend toward regulatory recognition of hybrid crypto investment products that blend accessibility with security and regulatory compliance.

Bitwise, however, isn’t stopping at Bitcoin and Ethereum. The company appears eager to broaden its horizons to include other cryptocurrencies, potentially tapping into the growing market for alternative digital assets. On January 28, just days before the ETF approval, Bitwise submitted a filing for a spot Dogecoin (DOGE) ETF. This bold move reflects an increasing willingness among issuers to test the boundaries of the SEC’s approval framework, particularly concerning emerging asset classes such as memecoins.

The crypto ETF landscape itself has been heating up, with issuers deploying diverse strategies to gauge regulators’ tolerance for innovation. Earlier this week, Bloomberg ETF analyst James Seyffart remarked on this trend, observing that issuers are “testing the limits of what this SEC is going to allow.” In a similar vein, Nathan Dean, a senior government analyst at Bloomberg Intelligence, highlighted the growing experimentation among issuers, citing unique filings that include investment products targeting memecoins.

Bitwise’s optimism about the broader crypto market extends beyond its ETF launch. On the same day as the SEC’s initial approval, the company issued a bold statement predicting that the current crypto bull market could sustain momentum well into 2026 and potentially beyond. According to the company, Washington’s increasing openness toward digital assets indicates a shift toward regulatory frameworks that accommodate the growing sector. “The path to full mainstream crypto adoption is clearer than ever,” Bitwise declared, signaling confidence in the expanding role of digital assets in modern finance.

As the crypto industry continues to evolve, regulatory decisions like these signal a gradual but significant integration of digital assets into traditional markets. Bitwise’s bold moves and the SEC’s willingness to approve innovative products suggest that the road to wider crypto adoption is more navigable than ever before. Whether this marks the beginning of a new era for the financial markets remains to be seen, but one thing is certain—crypto enthusiasts and traditional investors alike are keeping a close eye on these advancements.