Asset management firm Bitwise has submitted a Form S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded product (ETF) combining Bitcoin (BTC) and Ether (ETH). If approved, the ETF would trade on NYSE Arca, offering balanced exposure to the two largest cryptocurrencies.
Details of the Proposed ETF
The ETF aims to hold BTC and ETH in proportions approximating their relative market capitalizations, according to Bitwise’s filing. This innovative approach seeks to provide investors with easy access to diversified crypto exposure in a regulated format.
The filing did not specify an official launch date, stating only that trading would begin “as soon as practicable” after approval.
Regulatory Challenges and Leadership Changes
The SEC’s stance on crypto ETFs has evolved in 2024, approving the first spot Bitcoin ETFs in January and spot Ether ETFs in May. However, the regulatory environment remains uncertain with Gary Gensler, the current SEC Chair, set to step down on January 20, 2025.
With President-elect Donald Trump poised to appoint a new SEC head, many in the industry anticipate a more favorable crypto regulatory landscape. This optimism has spurred a wave of ETF applications, including proposals tied to Solana (SOL), Hedera (HBAR), and XRP, signaling growing confidence in expanded crypto ETF approvals.
Impact of 2024 Election on Crypto Regulation
The November 5 election marked a pivotal moment for the crypto industry, with Republicans gaining majority control of Congress. Analysts suggest this shift could lead to pro-crypto legislative advancements, aligning with President-elect Trump’s known support for digital assets.
According to Bitwise, the dual Bitcoin-Ether ETF would cater to the increasing demand for diversified crypto investment vehicles, offering retail and institutional investors a streamlined option to access the two largest cryptocurrencies by market cap.
Broader Implications for the Crypto Industry
Since the election, the SEC has faced growing pressure to approve a wider range of crypto ETFs. Bitwise’s application follows the firm’s November 21 filing for a spot Solana ETF, further signaling the industry’s push to expand offerings under anticipated regulatory changes.
As the SEC transitions to new leadership, the approval of Bitwise’s Bitcoin-Ether ETF could set a precedent for multi-asset crypto investment products, reinforcing the United States’ position in the global crypto market, according to Cointelegraph.
