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crypto.news 2025-01-31 07:28:30

Bitwise’s Bitcoin-Ethereum ETF gets initial SEC nod

Bitwise Asset Management’s exchange-traded product tracking Bitcoin and Ethereum has received the initial nod from the United States Securities and Exchange Commission. According to a Jan. 30 update from the commission, the Bitwise Bitcoin and Ethereum ETF cleared its first regulatory hurdle after its 19b-4 filing was granted “accelerated approval.” It now awaits the regulator’s decision on its S-1 registration, the final step before trading can commence. A 19b-4 approval allows an exchange to list and trade a new financial product, while an S-1 registration is required for issuing new securities to the public. Bitwise filed for the ETF in November in a bid to offer investors exposure to Bitcoin and Ethereum within a single product. The fund is structured to track the spot prices of Bitcoin and Ethereum, with asset weightings based on their relative market capitalizations. As of its latest filing, the allocation stood at approximately 83% Bitcoin and 17% Ethereum. The ETF will calculate these weightings by multiplying each asset’s circulating supply with a pricing benchmark. You might also like: Grayscale files for XRP ETF with NYSE While this is the first crypto ETP approval under the new SEC administration currently being led by acting chair Mark Udeya, it is the third joint Bitcoin and Ethereum ETF to receive a green light from the regulator. Since the fund’s structure closely mirrors previously approved products, such as the spot Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, the filing was approved within the first deadline. “The structure of the Trust, the terms of its operation and the trading of its Shares, and the representations in the Exchange’s amended filing are substantially similar to those of the spot bitcoin and spot ether ETP proposals approved in prior Commission orders,” the SEC wrote. Bitwise is currently awaiting approval for two other products, including a Dogecoin ETF for which it filed an S-1 on Jan. 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. Issuers are hopeful that the new SEC under President Donald Trump will be more open to a broader range of crypto investment products. As such, firms have started exploring ETFs beyond Bitcoin and Ethereum. For instance, Tuttle Capital has filed for ten leveraged ETF products tracking a variety of altcoins like XRP (XRP), Solana (SOL), Official Trump (TRUMP), Melania Meme (MELANIA), etc. Other issuers like Grayscale and Canary have also filed for altcoin-based ETFs. Read more: Grayscale launches Bitcoin miner ETF, offering new exposure to crypto

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