The Bitwise Bitcoin and Ethereum ETF: A New Era for Digital Assets

The Bitwise Bitcoin and Ethereum ETF will give investors exposure to the spot price of Bitcoin and Ether within a single fund, designed to reflect the market capitalizations of these two leading cryptocurrencies.

The Bitwise Bitcoin and Ethereum ETF will give investors exposure to the spot price of Bitcoin and Ether within a single fund, designed to reflect the market capitalizations of these two leading cryptocurrencies. As of the filing date, the fund is weighted 83% in Bitcoin and 17% in Ethereum, aligning the allocation with the market capitalization of each asset.

The ETF will track the spot prices of Bitcoin and Ethereum, using their current circulating supplies to determine market capitalization. This move positions the fund as a prime option for investors looking for exposure to both leading digital assets through a traditional financial vehicle like an ETF.

While the SEC has approved the fund’s Form 19b-4, which is the first step in the regulatory process, Bitwise still needs to secure approval for the Form S-1 registration application before the ETF can officially launch. Once approved, this ETF will allow investors to trade Bitcoin and Ethereum exposure without the need to directly hold the underlying assets, offering a more traditional and accessible route for crypto exposure.

The SEC’s decision comes less than two weeks after the new appointment of a crypto-friendly acting chair, which may indicate a shift in regulatory attitudes toward digital assets. Bitwise filed its paperwork for the ETF back in November, following the election of Donald Trump, and its approval further underscores the growing acceptance of digital assets within mainstream finance.

This approval also follows in the footsteps of other recent ETF approvals for Bitcoin and Ethereum, including funds from Hashdex and Franklin Templeton on December 19. These approvals are part of a broader trend where crypto ETFs are gaining traction, potentially allowing institutional and retail investors to access cryptocurrencies more easily.

In addition to its flagship Bitcoin and Ethereum ETF, Bitwise is also setting its sights on the next frontier of crypto ETFs: memecoins. On January 28, the firm filed for a spot Dogecoin ETF (DOGE), aiming to bring this popular digital asset into the ETF fold. As cryptocurrency continues to evolve, memecoin ETFs could become an intriguing investment vehicle for fans of coins like Dogecoin and Shiba Inu, capitalizing on their popularity.

While Bitwise continues to expand its ETF offerings, other players in the industry, such as Tuttle Capital, have also been exploring new and innovative crypto ETF products. These filings are seen as testing the SEC’s limits, especially as more firms express interest in launching leveraged and thematic crypto ETFs. Analysts predict that the SEC is likely to continue its cautious approach, carefully assessing the unique nature of each new filing.

A New Era for Digital Assets

The approval of the Bitwise Bitcoin and Ethereum ETF represents a major step toward the broader adoption of cryptocurrencies within traditional financial markets. The current bull market, according to Bitwise, could continue into 2026 and beyond, with Washington embracing digital assets like never before. The growing acceptance of crypto ETFs signals a clear path toward mainstream crypto adoption, offering a more secure and regulated way for investors to gain exposure to the burgeoning digital asset class.

As the cryptocurrency market continues to evolve and mature, the launch of crypto ETFs like the Bitwise Bitcoin and Ethereum ETF is likely to drive further innovation and interest from both institutional and retail investors. For those looking to take part in this rapidly expanding market, the approval of these ETFs marks an exciting new chapter in the future of digital assets.