The U.S. Securities and Exchange Commission (SEC) has officially greenlit the New York Stock Exchange’s (NYSE) application to list and trade shares of Bitwise’s combined Bitcoin and Ethereum exchange-traded fund (ETF). This marks a pivotal development in the evolving landscape of cryptocurrency investment products, signaling growing regulatory acceptance of digital assets.
The approval, granted under a 19b-4 filing, was fast-tracked due to the ETF's structural alignment with previously authorized spot crypto ETFs. This decision underscores the SEC’s increasing familiarity with crypto-based financial instruments and reflects a more streamlined review process for similar future applications.
👉 Discover how next-gen ETFs are reshaping digital asset investing.
Regulatory Approval and Investor Protection
The SEC confirmed that the proposed ETF complies with key provisions of the Securities Exchange Act of 1934, particularly Section 6(b)(5), which requires that exchange rules be designed to prevent fraudulent and manipulative practices while safeguarding investor interests.
“The Commission finds that the proposal is consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the exchange’s rules be designed to ‘prevent fraudulent and manipulative acts and practices’ and, in general, to protect investors and the public interest.”
This regulatory validation reinforces confidence in the legitimacy and transparency of crypto-linked financial products. While final approval of the Form S-1 registration statement is still pending, this milestone positions Bitwise as one of the first firms to receive clearance for a dual-asset spot crypto ETF.
Unlike earlier multi-asset crypto funds that left room for expansion into additional digital currencies, Bitwise has confirmed its ETF will remain strictly focused on Bitcoin and Ethereum—the two largest cryptocurrencies by market capitalization. This targeted approach may appeal to investors seeking exposure to established, high-liquidity assets without the volatility associated with newer or speculative tokens.
Asset Valuation and Fund Structure
The ETF will determine the market value of Bitcoin and Ethereum using standardized pricing benchmarks multiplied by their circulating supply. As of early 2025, Bitcoin’s market cap stands at approximately $2.7 trillion, while Ethereum holds a valuation of around $394 billion, according to CoinMarketCap data.
To ensure security and operational integrity, Bitwise Investment Advisers will manage the fund, with Coinbase serving as the digital asset custodian. The Bank of New York Mellon (BNY Mellon) has been appointed as cash custodian, fund administrator, and transfer agent—adding institutional-grade credibility to the product's backend infrastructure.
This combination of reputable financial partners highlights the maturation of the crypto asset management ecosystem, bridging traditional finance with blockchain innovation.
A Surge in Crypto ETF Filings
The Bitwise approval arrives amid a surge of new cryptocurrency ETF applications submitted in early 2025. On January 28, Bitwise itself filed for a separate meme coin-focused ETF, potentially including Dogecoin (DOGE) and other community-driven digital assets.
At the same time, Cboe Global Markets has received filings to list Solana (SOL)-based ETFs from major asset managers such as VanEck, Canary, Bitwise, and 21Shares. These developments suggest growing demand for diversified crypto exposure beyond Bitcoin and Ethereum.
Additionally, Coinbase Derivatives submitted proposals on January 30 for new futures contracts tied to Solana and Hedera (HBAR), further expanding the derivatives landscape for smart contract platforms.
Market analysts are closely watching these trends. Bloomberg ETF expert James Seyffart observed that issuers are now “testing the limits of what this SEC is going to allow,” especially following Tuttle Capital’s bold submission of ten leveraged crypto ETFs covering assets like Solana, XRP, and Cardano.
👉 See how institutional adoption is accelerating across major crypto networks.
Leadership Shifts and Evolving Regulatory Tone
A notable factor behind the SEC’s recent openness to crypto ETFs is a shift in leadership. In January 2025, former Chair Gary Gensler stepped down following the inauguration of President Donald Trump for his second term. His departure paved the way for Mark T. Uyeda to assume the role of acting chair.
Uyeda’s interim leadership is widely interpreted as a signal of a more business-friendly regulatory environment. His track record suggests a balanced yet pragmatic approach to innovation in financial markets.
Looking ahead, Paul Atkins—a former SEC commissioner known for his pro-market and deregulatory views—is expected to be confirmed as the agency’s permanent chair in the coming months. If confirmed, his appointment could further accelerate the approval timeline for crypto-related financial products.
This evolving regulatory climate may encourage more traditional financial institutions to enter the digital asset space, potentially driving greater liquidity, lower fees, and broader retail access.
Core Keywords
- Bitcoin ETF
- Ethereum ETF
- SEC approval
- crypto ETF filings
- spot crypto ETF
- NYSE listing
- Bitwise ETF
- digital asset regulation
Frequently Asked Questions (FAQ)
Q: What does SEC approval of a 19b-4 filing mean?
A: A 19b-4 filing allows an exchange like NYSE to list and trade shares of an ETF. SEC approval means the product meets regulatory standards for market fairness, transparency, and investor protection.
Q: Will the Bitwise ETF include cryptocurrencies other than Bitcoin and Ethereum?
A: No. Unlike some earlier multi-asset filings, Bitwise has confirmed its combined ETF will only hold spot Bitcoin and Ethereum, with no plans to add additional digital assets.
Q: Who is managing and safeguarding the assets in the Bitwise ETF?
A: Bitwise Investment Advisers is the fund manager. Digital assets are custodied by Coinbase, while BNY Mellon handles cash custody, administration, and transfer agency services.
Q: Why was the approval process faster than previous ETFs?
A: The SEC expedited review due to the ETF’s structural similarity to previously approved spot Bitcoin and Ethereum ETFs, reducing regulatory uncertainty.
Q: Are meme coin or Solana ETFs likely to be approved soon?
A: While filings have been submitted, approvals are not guaranteed. Products involving higher-volatility or less-established assets may face stricter scrutiny compared to flagship cryptocurrencies.
Q: How might leadership changes at the SEC impact future crypto regulations?
A: With Mark Uyeda as acting chair and Paul Atkins likely to succeed him, the SEC may adopt a more innovation-supportive stance, potentially leading to faster approvals and clearer regulatory frameworks.
👉 Stay ahead of regulatory shifts shaping the future of crypto investing.