Bitwise Bitcoin and Ether ETF Gains SEC Approval

The U.S. Securities and Exchange Commission (SEC) has granted initial approval for NYSE Arca to list Bitwise’s exchange-traded fund (ETF) tracking Bitcoin and Ether.

The U.S. Securities and Exchange Commission (SEC) has granted an initial approval for NYSE Arca to list Bitwise’s exchange-traded fund (ETF) tracking Bitcoin and Ether. This decision marks a step forward in expanding regulated crypto investment options in the U.S.

The hybrid ETF will only begin trading after receiving final approval of its pending S-1 registration.

The SEC’s decision to approve NYSE Arca's proposal follows a review of the exchange's 19b-4 filing in November 2024. The approval process moved at an accelerated pace, reducing the typical waiting period from 240 days to just 45. This move indicates a potential shift toward a faster regulatory approach for cryptocurrency-based financial products.

The regulator stated that the proposal meets the Exchange Act's requirements, particularly regarding the prevention of fraud and market manipulation. The decision aligns with previous approvals for crypto-related ETFs, including those from Hashdex and Franklin Templeton. These funds provide direct exposure to spot Bitcoin and Ether, giving investors access to digital assets in a regulated environment.

The SEC has already greenlit multiple spot Bitcoin and Ethereum ETFs, with more cryptocurrency-based investment products awaiting approval. Hashdex's Crypto Index ETF includes a variety of digital assets, while Franklin's Crypto Index ETF tracks Bitcoin and Ethereum performance. These approvals reflect a growing institutional interest in regulated crypto investment vehicles.

Meanwhile, asset managers are submitting applications for altcoin-focused ETFs, including funds tied to Dogecoin and Litecoin. Bitwise recently filed for a Dogecoin ETF in Delaware, signaling potential expansion beyond Bitcoin and Ethereum.

Analysts believe altcoin ETFs could attract capital but may see less consistent demand than Bitcoin-focused funds. Unity Wallet Chief Operating Officer James Toledano noted that altcoin ETFs depend on innovation-friendly policies to succeed. He pointed out that Bitcoin ETFs benefit from sustained institutional interest, while altcoins often experience unpredictable demand. This uncertainty could impact long-term performance and investor confidence in non-Bitcoin crypto ETFs.

SEC Speeds Up Crypto ETF Approval Process

ETF analysts view the SEC's accelerated approval as a sign of shifting regulatory dynamics for digital asset funds. Bloomberg senior analyst Eric Balchunas suggested that even under the previous SEC leadership, these approvals were expected. However, he highlighted the 45-day approval period as a significant departure from the usual 240-day process.

Balchunas also predicted that Litecoin ETF approval might be next in line. If regulators continue approving crypto-related funds at a faster pace, more products could enter the market soon. This shift could boost mainstream adoption and institutional investment in digital assets.

FAQs

Which exchange-traded fund (ETF) has received initial approval from the U.S. Securities and Exchange Commission (SEC)?

Bitwise's ETF, which will track Bitcoin and Ether, has obtained the initial approval.

When did the SEC begin reviewing the ETF's application?

The SEC commenced its review of the ETF's 19b-4 filing in November 2024.

How quickly did the SEC approve the ETF?

The SEC granted approval within 45 days, which is notably faster than the typical 240-day approval period for such ETFs.