US SEC Approves NYSE Arca’s Proposal to List Bitwise Joint Bitcoin and Ether ETF

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Sujha Sundararajan

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Sujha Sundararajan

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SEC approves Bitwise hybrid ETF

Bitwise’s exchange-traded fund (ETF) tracking Bitcoin and Ether, has received initial approval from the US Securities and Exchange Commission (SEC).

The “accelerated approval” grants NYSE Arca to list and trade shares of the hybrid fund. On November 2024, the New York Stock Exchange filed a 19b-4 form with the SEC.

“After careful review, the Commission finds that the Proposal is consistent with the Exchange Act and rules and regulations.” The SEC approval added that in particular, the proposal aligns with the prevention of “fraudulent and manipulative acts and practices.”

The regulator has already approved similar products filed by Hashdex and Franklin Templeton. Both indexes hold spot Bitcoin and spot Ether directly. Hashdex’s Crypto Index ETF provides investors exposure to a slew of different cryptos, while Franklin Crypto Index ETF will track the Institutional Digital Asset Index, designed to reflect the performance of Bitcoin and Ethereum.

Meanwhile, asset managers have filed a flurry of crypto-related ETF applications including products racking the price of Doge and Litecoin. Bitwise itself has filed for a Dogecoin ETF in Delaware recently.

“Altcoin ETFs have genuine potential to attract capital, especially if supported by innovation-friendly policies with the new U.S. administration,” James Toledano, Chief Operating Officer at Unity Wallet, told Cryptonews.

“But, their success may be less consistent compared to Bitcoin ETFs due to the seemingly episodic nature of interest in altcoins.”

SEC’s Accelerated Approval Signals Faster Crypto ETF Process, Experts Say

The SEC’s accelerated approval still requires the regulator’s clearance for its pending S-1 registration. The approvals of both form 19b-4 and S-1 registration is necessary before the fund can began trading on the exchange.

However, ETF experts say that the move by the SEC is much expected. “Even Gensler’s SEC would approve these,” said Bloomberg senior analyst Eric Balchunas.

“That said, they approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster but no way to know really,” he wrote on X.

The analyst also predicted that Litecoin approval would likely be on deck.

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