Bitwise Bitcoin and Ethereum ETF nears SEC approval
January 31, 2025
On January 30, the U.S. Securities and Exchange Commission (SEC) took the first step toward approving a spot exchange-traded fund (ETF) from Bitwise Asset Management, which will track the price of BTC and ETH in proportion to their market capitalization. This preliminary approval of Form 19b-4 is a key milestone in the ETF launch process.
How the new ETF works
The Bitwise Bitcoin and Ethereum ETF will provide investors with access to the spot prices of the two leading cryptocurrencies within a single fund. The allocation of BTC and ETH within the fund will be based on their market capitalization: at the time of the filing, 83% was allocated to BTC and 17% to ETH. Calculations will be based on price benchmarks and the current circulating supply of assets.
Key players in the fund’s launch
To ensure operational security and asset custody, Bitwise has partnered with major financial institutions. The fund’s management company is Bitwise Investment Advisers, the digital asset custodian is Coinbase, and the administrator, cash custodian, and transfer agent is Bank of New York Mellon.