US SEC Approves Combined Bitcoin And Ethereum ETF by Bitwise

The United States Securities and Exchange Commission (SEC) has approved the launch of Bitwise’s combined Bitcoin and Ethereum Exchange-Traded Fund (ETF) for NYSE Arca to register and conduct share trading operations.

The approval opens the door for institutional and retail investors to gain exposure to two of the most prominent crypto assets—bitcoin (BTC) and ethereum (ETH)—through a single investment product. 

A Combined Bitcoin & Ethereum ETF?

Unlike single-asset ETFs, which focus on one digital asset, the combined Bitcoin and Ethereum ETF offers a diversified approach to crypto investment. By bundling these two major assets into a single product, the ETF mitigates the risks of investing in a single asset while still allowing investors to tap into the potential growth of both blockchain ecosystems. 

The ETF will be created for ease of use, eliminating the need for investors to handle complicated crypto wallets or deal with the technicalities of owning digital assets. The straightforward strategy could appeal to more cautious investors reluctant to enter the crypto space due to its perceived complexity.

While maintaining cash reserves that provide investors with market cap exposure to these leading assets, the agency’s approval marks a new chapter in the evolution of crypto-backed ETFs. 

The SEC has approved Bitwise’s ETF filing, but the ETF still needs S-1 registration approval before it can begin trading. Meanwhile, Grayscale has applied to the SEC for a spot XRP ETF while simultaneously submitting proposals for Litecoin and Solana ETFs. 

The review process will ensure that the proposed product meets regulatory standards and investor protection requirements, signaling a shift in the SEC’s approach to cryptocurrency exchange-traded funds. 

As the regulatory framework for digital assets evolves, VanEck and ProShares are seeking approval for ETFs that track Litecoin and XRP, while Bitwise continues to broaden its offerings with an application for a Dogecoin ETF. 

Market Impact on BTC & ETH

Following the announcement, the world’s leading crypto asset has slightly declined from $105,000 to over $104,200. However, in the past weeks, the asset surpassed an all-time high of $109,000.  

In the last 24 hours, ETH, the world’s second-largest crypto by market capital, has increased 1.62%, trading at over $3,200. Its market cap is over $393.4 billion.