Bitwise ETF Tracking Bitcoin and Ethereum Receives Initial SEC Approval

Bitwise Asset Management’s exchange-traded product (ETP) tracking the performance of Bitcoin and Ethereum has cleared its first regulatory hurdle with the United States Securities and Exchange Commission (SEC).

Regulatory Approval Process

The SEC granted the Bitwise Bitcoin and Ethereum ETP “accelerated approval” for its 19b-4 filing, allowing the exchange to list and trade the new financial product. The next step is the S-1 registration, which is required for issuing new securities to the public.

ETF Structure and Allocation

The fund is designed to track the spot prices of Bitcoin and Ethereum, with asset weightings based on their relative market capitalizations. As of the latest filing, the allocation stood at approximately 83% Bitcoin and 17% Ethereum. The ETF will calculate these weightings by multiplying each asset’s circulating supply with a pricing benchmark.

Industry Implications

This is the first crypto ETP approval under the new SEC administration, and the third joint Bitcoin and Ethereum ETF to receive a green light from the regulator. The fund’s structure closely mirrors previously approved products, such as the spot Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton.

“The structure of the Trust, the terms of its operation and the trading of its Shares, and the representations in the Exchange’s amended filing are substantially similar to those of the spot bitcoin and spot ether ETP proposals approved in prior Commission orders,” the SEC wrote.

Future Prospects

Bitwise is currently awaiting approval for two other products, including a Dogecoin ETF and the Bitcoin Standard Corporations ETF. Issuers are hopeful that the new SEC will be more open to a broader range of crypto investment products, leading to a surge in ETF filings beyond Bitcoin and Ethereum.

Some examples of these filings include:

  • Tuttle Capital’s leveraged ETF products tracking altcoins like XRP, Solana, and others
  • Grayscale and Canary’s altcoin-based ETFs

As the crypto landscape continues to evolve, investors can stay up-to-date with the latest news and developments on Global Crypto News.

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