SEC Approves Bitwise Combined Bitcoin and Ethereum ETF

According to an SEC filing made public on Thursday, the agency granted approval on an “accelerated basis,” fast-tracking a moment that many investors have been eagerly awaiting.

The SEC explained its reasoning in a direct quote, saying that “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 fraudulent and manipulative acts and practices’ and, ‘in general, to protect investors and the public interest.’” This is a significant milestone, as the language underscores the agency’s focus on safeguarding investors while opening doors to new crypto-based assets.

The SEC approves the Bitwise Bitcoin and Ethereum ETF, source: X

It’s also worth noting that a handful of crypto asset managers have been racing to submit a variety of ETF filings to U.S. regulators in recent months. This trend reflects what some are calling a “sea-change” in how policymakers, particularly under the Trump administration’s final stretch, are starting to consider digital asset funds. 

Even before this Bitwise fund got the nod, VanEck and ProShares were busy applying for ETFs centered on Litecoin, XRP, and Solana, all in the days leading up to Inauguration Day. Bitwise has also applied for XRP, Dogecoin, and Solana ETFs.

Earlier today Grayscale Investments lodged a request with the New York Stock Exchange to transform its existing XRP Trust into a spot XRP exchange-traded fund (ETF). If approved, this move would allow investors to buy and sell shares tied directly to XRP’s market performance, all under regulated exchange oversight.

Bitwise’s shiny new ETF will hold spot bitcoin and ether positions as well as cash, mixing the two largest cryptocurrencies into a single product. 

It joins other digital asset ETF proposals that have recently earned the SEC’s blessing—like those from Nasdaq and Cboe BZX Exchange, which, in December 2024, gained approval to list and trade share classes tied to various crypto index funds from Hashdex and Franklin Templeton.