SEC Grants Accelerated Approval for Bitwise Crypto ETF
The U.S. Securities and Exchange Commission has approved a filing from NYSE Arca to list and trade shares of Bitwise’s Bitcoin and Ethereum exchange-traded fund (ETF). The decision, announced Thursday, was granted on an "accelerated basis," signaling a significant shift in regulatory attitudes toward crypto investment products.Details of the Bitwise ETF
The Bitwise Bitcoin and Ethereum ETF will provide exposure to both assets in spot markets while also holding cash reserves. The SEC cited Section 6(b)(5) of the Exchange Act, which mandates that the Exchange’s rules be designed to prevent fraud and protect investors. The agency acknowledged that the evolving regulatory landscape has prompted a reconsideration of its stance on such investment products.Changing Regulatory Environment Under Trump Administration
The approval marks another milestone in the wave of crypto investment product filings seen since President Donald Trump returned to the White House. During the prior administration, SEC Chair Gary Gensler resisted approving spot Bitcoin ETFs until a federal court ruling forced the agency’s hand. Now, multiple firms, including VanEck and ProShares, have filed for crypto ETFs covering assets such as Litecoin, XRP, and Solana. Meanwhile, Coinbase Derivatives is pushing for approval of SOL and Hedera futures under the oversight of the Commodity Futures Trading Commission.Bitwise’s Position in the Expanding Crypto ETF Market
The Bitwise fund follows in the footsteps of other crypto index ETFs, such as those recently approved from Hashdex and Franklin Templeton in December 2024. With spot Bitcoin ETFs now widely available, the approval of an Ethereum-based product signals greater institutional adoption of digital assets, setting the stage for further regulatory developments in the industry.
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