US SEC Gives Initial Approval to Combined Bitcoin, Ether ETF

US SEC Gives Initial Approval to Combined Bitcoin, Ether ETF

The U.S. Securities and Exchange Commission (SEC) has approved part of an application for a new exchange-traded fund (ETF) designed to track Bitcoin and Ethereum, the two largest cryptocurrencies by market cap. The Bitwise Bitcoin and Ethereum ETF, from Bitwise Asset Management, aims to offer investors a balanced exposure to these digital assets, weighted by their market capitalization. The fund's structure will be similar to existing ETFs that hold either Bitcoin or Ether directly.

In an official filing, the SEC approved the form 19b-4, a step towards allowing the product to begin trading. However, the fund still requires approval for its pending S-1 registration application, and both approvals are necessary for the ETF to start trading.

Bitwise submitted its application for the joint fund in November 2024, following the election of President Donald Trump, who has promised to support the cryptocurrency sector with favorable regulations. The Trump administration's crypto-friendly stance has sparked a surge of ETF proposals, with investment firms exploring new ways to engage with digital assets, including memecoin ETFs. For example, Bitwise has also proposed an ETF tracking Dogecoin, a memecoin known for its volatility driven by social media trends.

Alongside Bitcoin and Ethereum, other crypto-focused ETFs have been filed for tokens like XRP, Solana, and Litecoin, each claiming to offer unique utility in the digital space. Meanwhile, U.S. Bitcoin ETFs launched at the beginning of 2024 have already proven successful, amassing over $121 billion in total assets. Ethereum ETFs have also seen strong interest, with funds under management exceeding $11 billion.