- The SEC has approved Bitwise to list its new ETF that holds both Bitcoin and Ethereum on NYSE Arca on an accelerated basis.
- It’s the SEC’s first crypto ETF approval under the leadership of Mark Uyeda, who is fast-tracking crypto initiatives at the agency after four years of anti-crypto policies by Gary Gensler.
Investors who want to invest in Bitcoin and Ethereum exchange-traded funds no longer have to choose between both, with the US Securities and Exchange Commission approving a dual ETF by Bitwise that will hold both assets.
In an update on Thursday, the agency revealed that it had given “accelerated approval” to Bitwise following the company’s 19b-4 filing. The firm now awaits the commission to approve its S-1 filing, which is the final hurdle before the ETF can debut on exchanges. The SEC noted that NYSE Arca—a subsidiary of the NYSE that majors in ETFs—had satisfied the agency’s requirements for ETF listings, including having sufficient checks to “prevent fraudulent and manipulative acts and practices” and, “in general, protect investors and the public interest.”
Bitwise filed for the mixed-asset ETF last November. At the time, Chief Investment Officer Matt Hougan noted that the firm advises its investors to hold both tokens, insisting that they are not rivals any more than stocks and gold.
” I think it’s going to be a huge hit with investors,” Hougan added.
The new product will allocate a majority of its resources to BTC; at launch, the ratio will be 83:17, but it will be revised periodically based on each token’s circulating supply and a pricing benchmark. Like most other memecoins, Bitwise collaborated with Coinbase for crypto custody, with the Bank of New York Mellon as the cash custodian and administrator.
The Golden Era of Crypto ETFs
The ETF is the first of its kind to be approved under the leadership of Mark Uyeda, the acting chairman of the SEC. Uyeda replaced Gary Gensler at the helm, whom he served under as a commissioner for four years. Despite being part of the Gensler regime, which was viewed as anti-crypto, Uyeda has been a crypto advocate. Once he took over, his first order of business was to create a crypto task force headed by Hester “Crypto Mom” Peirce.
However, it’s not the first dual exchange-traded fund holding both Ethereum and Bitcoin. Just over a month ago, the SEC approved similar products from Wall Street giant Franklin Templeton and crypto investment firm Hashdex.
The approval further cements most experts’ assertion that the second Trump presidency will be the golden era of crypto ETFs. With Uyeda at the helm, the SEC is likely to keep handing out approvals to crypto fund issuers, and when Trump’s appointee for SEC Chair, Paul Atkins, takes over, the trend is unlikely to change.
Crypto and traditional finance asset managers have identified the unique opportunity and are capitalizing on it by filing dozens of applications. Bitwise, which already holds $6.7 billion in its BTC spot ETF, filed a Dogecoin ETF this week, as we reported. Some of the other applications target XRP, Litecoin, Chainlink, Polkadot, and Solana.
Ethereum trades at $3,270, gaining 1.35% in the past day, while Bitcoin lost 1.2% in that time to trade at $104,220.
