Bitwise's Bitcoin and Ethereum ETF Gets the Green Light from the SEC, Signaling a New Era of Faster Approvals

The Wall Street regulator, under Acting Chair and Commissioner Mark Uyeda, said Thursday that it found NYSE's proposal to trade the combined BTC and ETH ETF was "consistent with Section 6(b)(5) of the Exchange Act."

The U.S. Securities and Exchange Commission (SEC) on Thursday approved NYSE Arca's application to trade the first-ever exchange-traded fund (ETF) in the United States that provides combined exposure to Bitcoin (BTC) and Ethereum (ETH).

The approval comes after Bitwise filed with the SEC in December 2022 to launch the Bitwise BTC & ETH ETF Trust, which will trade on NYSE Arca under the ticker symbol "BTCE."

The ETF will provide investors with exposure to the two largest cryptocurrencies by market capitalization, with each coin being allocated 50% of the fund's total net assets.

According to the SEC's filing, the ETF will invest at least 80% of its total net assets in shares of the Grayscale Bitcoin Trust (GBTC) and the Grayscale Ethereum Trust (ETHE).

The remaining 20% of the ETF's total net assets will be invested in other assets, including cash, cash equivalents, government securities, and other ETFs.

The approval of the ETF marks a significant development in the U.S. crypto regulatory landscape, as it is the first time that the SEC has approved an ETF that provides direct exposure to both Bitcoin and Ethereum.

Previously, the SEC had approved several ETFs that provided exposure to either Bitcoin or Ethereum, but not both cryptocurrencies in a single fund.

The approval of the ETF also comes amid increasing demand from investors for exposure to cryptocurrencies, as well as the growing popularity of ETFs as an investment vehicle.

According to ETF Trends, there are currently over 3,700 ETFs listed in the U.S., with total assets under management (AUM) of $6.5 trillion.