TLDR
- Bitwise secured preliminary SEC clearance for dual crypto ETF combining Bitcoin and Ethereum
- The product will track spot prices with 83% BTC and 17% ETH allocation based on market caps
- This represents the third combined BTC-ETH ETF approved under acting chair Mark Udeya
- Coinbase will serve as custodian with daily NAV calculations at 4:00 PM ET
- Final S-1 registration approval still needed before trading can start
Bitwise Asset Management has reached a crucial milestone in its effort to launch a pioneering exchange-traded fund combining Bitcoin and Ethereum exposure. The SEC’s January 30 announcement revealed approval of the fund’s 19b-4 filing, clearing the way for eventual listing and trading on NYSE Arca.
The product represents an innovative approach to cryptocurrency investment, offering exposure to the two largest digital assets through a single investment vehicle. According to the latest filing documents, the fund will maintain a market capitalization-based weighting system, currently set at 83% Bitcoin and 17% Ethereum.
Acting SEC Chair Mark Udeya’s administration has now approved three such combined cryptocurrency ETFs, suggesting a pattern of acceptance for these dual-asset investment products. The regulatory body specifically noted the similarities between Bitwise’s proposal and previously approved funds from competitors Hashdex and Franklin Templeton.
Coinbase’s institutional custody division will handle the secure storage of the fund’s cryptocurrency holdings. The ETF will calculate its net asset value daily at market close, using established price benchmarks derived from major cryptocurrency trading venues.
The fund’s structure allows for dynamic rebalancing based on market movements, with allocations adjusted by multiplying each asset’s total circulating supply by current market prices. This approach ensures the fund maintains proportional exposure to both cryptocurrencies as their relative values fluctuate.
Bitwise submitted the initial application in November 2024, positioning the fund as a simplified solution for investors seeking exposure to both leading cryptocurrencies. The proposal arrived amid growing institutional interest in regulated cryptocurrency investment products.
The asset manager has maintained an active regulatory calendar, submitting multiple cryptocurrency ETF applications in recent months. Their January 29 filing for a Dogecoin ETF highlights the company’s expansion beyond traditional cryptocurrency offerings into the realm of popular alternative digital assets.
Market data from CoinGecko shows Bitcoin trading at $104,331 with a minor 0.2% decline, while Ethereum has posted a 1.2% gain to reach $3,234.15. These price levels reflect the current market environment as the fund progresses through regulatory review.
Bloomberg’s senior ETF analyst Eric Balchunas noted the quick pace of the approval on social media platform X, though he expressed uncertainty about whether this speed indicates a broader shift in regulatory processing times.
The fund still requires SEC approval of its S-1 registration statement before trading can commence. This final review will examine the fund’s disclosure practices and investor protection measures to ensure compliance with securities regulations.
Bitwise has shown particular interest in expanding its cryptocurrency product lineup. Beyond the combined ETF, the company has proposed several other products, including the Bitcoin Standard Corporations ETF, which would focus on companies holding substantial Bitcoin reserves.
Other investment firms have followed similar paths, with Tuttle Capital filing for multiple leveraged cryptocurrency ETFs. Their proposals cover various digital assets, including XRP, Solana, and even cryptocurrency tokens associated with political figures.
The current regulatory environment under the Trump administration has appeared more receptive to cryptocurrency investment products. This shift has encouraged asset managers to explore diverse offerings beyond traditional cryptocurrency funds.
Bitwise’s October 2024 application for an XRP ETF and November filing for a Solana ETF demonstrate the company’s commitment to broadening its cryptocurrency investment options. These moves align with growing investor demand for regulated exposure to various digital assets.
The SEC’s accelerated approval process for this filing suggests potential changes in the regulatory approach to cryptocurrency investment products. However, the final timeline for launch remains dependent on the completion of the S-1 registration review process.
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