Bitwise’s Hybrid Bitcoin-Ethereum ETF Greenlighted By SEC For Trading On NYSE Arca

On Jan. 30, the U.S. Securities and Exchange Commission (SEC) approved NYSE’s proposal to list and trade shares of Bitwise’s Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) — a hybrid investment product giving investors exposure to the spot price of both BTC and ETH in one regulated fund.

As per a statement, the regulator issued accelerated approval to Bitwise’s Bitcoin-Ethereum ETF just over a month after greenlighting similar products filed by Hashdex and Franklin Templeton.

SEC Fast-Tracks Bitwise’s Bitcoin And Ethereum ETF

The NYSE Arca officially filed to list and trade shares of Bitwise’s dual spot Bitcoin and Ethereum exchange-traded fund on Nov. 26, 2024. The filing was published in the Federal Register on December 16, 2024, with an updated filing submitted last week.

The investment vehicle aims to expose investors to Bitwise’s Bitcoin and Ethereum in a single fund, weighted according to each crypto’s relative market capitalization — currently comprising 83% BTC and 17% ETH.

The SEC approved the Bitwise Bitcoin and Ethereum ETF on an “accelerated basis” after finding that the proposal bears similarities to spot Bitcoin and Ethereum ETP proposals greenlighted in the past.

“In particular, 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,” the SEC notice adds.

The Bitwise dual Bitcoin-Ethereum ETF will calculate the market cap of the two assets by multiplying the pricing benchmarks by their current circulating supplies, according to the filing. 

Notably, the fund’s net asset value will be calculated daily at 4:00 p.m. ET using price benchmarks that aggregate real-time trade data from leading crypto exchanges.

The SEC’s approval signals a wider acceptance of digital assets under the new Donald Trump administration’s more industry-friendly position.

“They approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster, but no way to know really,” Bloomberg senior ETF analyst Eric Balchunas observed in a post on X.

While Bitwise’s combined Bitcoin and Ethereum ETF has cleared its first SEC hurdle, it still needs the agency’s approval of its S-1 registration statement before trading can officially start. 

More Crypto ETF Approvals More Likely Under New SEC Leadership

Balchunas, meanwhile, believes a Litecoin ETF is next in line for SEC’s consideration. Regulatory uncertainty continues to cast doubt over the potential approval of Solana and XRP ETFs. Nonetheless, the SEC’s new leadership could create more favorable conditions for more crypto ETF approvals.

On Jan. 30, Bitwise suggested that the current bull market could run into 2026 and beyond “with Washington embracing digital assets like never before.”

“The path to full mainstream crypto adoption is clearer than ever,” it postulated.