Key Points
- A Bitcoin and Ethereum exchange-traded product (ETP) by Bitwise Asset Management has received preliminary approval from the US SEC.
- Bitwise is also awaiting approval for two other products, including a Dogecoin ETF and a Bitcoin Standard Corporations ETF.
Bitwise Asset Management’s ETP, which tracks Bitcoin and Ethereum, has been given an initial approval by the United States Securities and Exchange Commission (SEC).
In a January 30 update from the SEC, it was revealed that the Bitwise Bitcoin and Ethereum ETF had cleared its first regulatory obstacle after receiving “accelerated approval” for its 19b-4 filing. The product now waits for the regulator’s decision on its S-1 registration, the last step before trading can begin.
About the 19b-4 Approval and S-1 Registration
A 19b-4 approval permits an exchange to list and trade a new financial product, while an S-1 registration is necessary for issuing new securities to the public.
Bitwise submitted the ETF application in November with the intention of providing investors with exposure to Bitcoin and Ethereum within a single product. The fund is designed to follow the spot prices of Bitcoin and Ethereum, with asset allocations determined by their respective market capitalizations.
Allocation and Other Approvals
As per the latest filing, the allocation was approximately 83% Bitcoin and 17% Ethereum. The ETF will determine these allocations by multiplying each asset’s circulating supply with a pricing benchmark.
This is the first crypto ETP approval under the new SEC administration led by acting chair Mark Udeya, and the third joint Bitcoin and Ethereum ETF to receive approval from the regulator.
Since the fund’s structure closely resembles previously approved products, such as the spot Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, the filing was approved within the first deadline.
Bitwise is also awaiting approval for two other products: a Dogecoin ETF, for which it filed an S-1 on January 29, and the Bitcoin Standard Corporations ETF that will invest in equity securities of publicly traded firms holding over 1,000 BTC in their corporate treasuries.
Hopeful Issuers and New Filings
Issuers are optimistic that the new SEC under President Donald Trump will be more receptive to a wider range of crypto investment products. As a result, firms have started to explore ETFs beyond Bitcoin and Ethereum.
For example, Tuttle Capital has filed for ten leveraged ETF products tracking various altcoins like XRP, Solana, Official Trump, Melania Meme, and others. Other issuers like Grayscale and Canary have also filed for altcoin-based ETFs.