Bitcoin & Ethereum ETF Approved—Will We See an XRP or Solana ETF Next?

The SEC has quickly approved a new investment fund from Bitwise and the New York Stock Exchange. This ETF allows people to invest in Bitcoin and Ethereum by tracking each cryptocurrency’s current price and market size. However, the companies still need to get final approval on their full registration before the ETF can officially start trading.

Structure of the Joint ETF

The fund will allocate its investments by assessing each cryptocurrency’s circulating supply relative to its price. As of the filing date, the portfolio was composed of approximately 83% Bitcoin and 17% Ethereum. By tracking the real-time spot prices of both cryptos, the ETF provides investors with an accurate and up-to-date reflection of their market performances.

“The path to full mainstream crypto adoption is clearer than ever,” Bitwise stated in its latest update, predicting a continued crypto bull market through 2026 and beyond. Company representatives cite growing institutional acceptance and regulatory clarity as catalysts for their optimism.

Key Players in Fund Management

Upon final approval, Bitwise Investment Advisers will oversee the ETF, and Coinbase, a leading U.S. cryptocurrency exchange, will be responsible for storing the crypto assets Additionally, the Bank of New York Mellon will manage cash, administrative tasks, and other support services. By partnering with established financial institutions, Bitwise appears to reassure regulators and traditional investors about security and oversight.

Part of a Growing Trend

This join ETF effort marks the third such product greenlit by the SEC, following a similar go-ahead for Hashdex and Franklin Templeton on December 19. These approvals highlight an accelerating trend of regulators warming up to spot crypto ETFs that combine major assets.

Beyond BTC and ETH, Bitwise is also branching into more speculative territories. The company recently filed for a spot in Dogecoin (DOGE) ETF on January 28, reflecting a broader movement toward

“testing the limits of what this SEC is going to allow,” as Bloomberg ETF analyst James Seyffart described.

According to Seyffart, this exploratory spirit among issuers is part of a larger pattern:

“ETF issuers are testing the limits of what this SEC is going to allow.” Meanwhile, Bloomberg Intelligence senior government analyst Nathan Dean added that companies are “probing the SEC’s boundaries, with unique filings including memecoin ETFs.”

Bitcoin Gains Momentum with Rising Crypto ETFs and Central Bank Interest

Under President Trump’s relaxed regulatory stance, crypto ETF applications are skyrocketing as asset managers rush to launch funds tied to various digital assets. This surge is seen either as a race to secure market share before potential rule changes or a response to growing investor demand for crypto exposure without directly holding the assets.

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At the same time, Trump’s initiative to establish a cryptocurrency reserve is inspiring central banks to consider buying Bitcoin. The Czech National Bank is contemplating allocating up to 5% of its reserves to BTC, while Swiss advocates are pushing for a national vote to include this crypto in Switzerland’s reserves.

Ethereum Spot ETFs Capture the Market with $67.77M Inflows

Following the SEC’s decision, a robust $67.77 million flow into Ethereum spot ETFs, signaling strong investor interest. BlackRock’s ETHA led the charge with an impressive $79.86 million net inflow, bringing its total to over $4 billion. Fidelity’s FETH also attracted $15.41 million, totaling $1.41 billion historically.

Meanwhile, Grayscale’s Ethereum Trust ETF (ETHE) faced a $40.29 million outflow, adding to its $3.9 billion total outflows. In contrast, Grayscale’s Ethereum Mini Trust ETF (ETH) enjoyed a $12.79 million inflow, reaching $594 million overall. Currently, Ethereum spot ETFs hold $11.78 billion in assets, capturing 3.02% of the total Ethereum market.

Pushing Beyond the Norm

The timing of Bitwise’s ETF developments aligns with a relatively bullish sentiment in the crypto market. The firm suggests that if regulatory momentum continues, the current upswing could persist well into the latter half of the decade. Supporters point to the appointment of more open-minded figures within regulatory bodies as a game-changer.

Conclusion:

Despite these promising signs, it’s important to recognize that Bitwise’s joint Bitcoin and Ethereum ETF still requires the final stamp of approval. As with any pioneering product, unforeseen hurdles may arise, especially around regulatory clarity. With regulators showing a willingness to consider novel crypto initiatives and major institutions stepping up to provide custody and administrative backing, the door to mainstream acceptance appears wider than ever. While investors await the SEC’s final decision on Bitwise’s Form S-1, the crypto community is watching closely to see how these innovations will reshape the industry’s future.

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Frequently Asked Questions (FAQs)

1. What did the SEC recently approve?
The SEC quickly approved a new BTC and ETH ETF from Bitwise and the New York Stock Exchange.

2. How does the Bitwise-NYSE ETF work?
It allows investors to track BTC and ETH prices and market sizes within a single fund.

3. What is the current asset weighting in the ETF?
Approximately 83% BTC and 17% ETH based on circulating supply and pricing benchmarks.

4. What needs to happen before the ETF starts trading?
Final approval of the full registration is required before the ETF can officially begin trading.

5. Who manages the Bitwise-NYSE ETF if approved?
Bitwise Investment Advisers will manage the fund.

6. Which companies are responsible for storing and managing the ETF’s assets?
Coinbase will store the crypto assets, and the Bank of New York Mellon will handle cash and administrative tasks.