The United States Securities and Exchange Commission (SEC) has given the green light to an exchange-traded fund (ETF) that tracks the two largest crypto assets. The ETF, proposed by the asset manager Bitwise, aims to provide investors with regulated exposure to Bitcoin and Ether.
Bitcoin and Ether ETF Approved?
The SEC’s decision comes after Bitwise submitted paperwork for the joint fund last November following the US presidential election. This move is unsurprising, as President Donald Trump’s administration was expected to be crypto-friendly. The Republican president had pledged to implement supportive regulations for the digital asset sector.
The structure of the ETF is similar to that of existing ones that hold either Bitcoin or Ether directly. The SEC’s approval of the 19b-4 form is a significant step. However, the fund still needs approval for its pending registration application (form S-1) to start trading.
The partial approval of the Bitwise Bitcoin and Ethereum ETF is a notable development for the crypto community. The approval process for crypto-related ETFs has been gradual, with the SEC taking a cautious approach, citing investor protection. The regulator’s latest move shows the growing interest in digital assets and its recognition as investment opportunities.
Meanwhile, this is not the first crypto-related joint ETF. Grayscale introduced the Bitcoin Miners ETF (MNRS), which tracks the Bitcoin Miners Index, comprising publicly traded companies that generate at least 50% of their revenue from Bitcoin mining. The fund offers investors exposure to the growth potential of the Bitcoin mining industry without directly investing in Bitcoin.
Bitwise Seeks to Expand Crypto-Related ETFs
Bitwise has been actively trying to expand its crypto-related ETF offerings. Surprisingly, a few months ago, amid an ongoing lawsuit between Ripple Labs and the SEC, Bitwise filed for a spot XRP ETF. If approved, it would be an addition to its existing lineup of crypto ETFs, which includes the Bitcoin ETF (BITB) and Ether ETF (ETHW).
Recently, the company filed for a spot Dogecoin ETF with the U.S. regulator (SEC). This move follows the launch of the Solana-based tokens TRUMP and MELANIA, which the U.S. president endorsed.
In addition to the Dogecoin ETF, Bitwise has also filed to convert three of its existing futures-based ETFs to new “Trendwise” strategies. These ETFs will rotate between crypto futures and US Treasuries exposure based on market trends, aiming to minimize downside volatility and achieve long-term price appreciation.
