SEC Launches Review of Bitwise Bitcoin and Ethereum ETF Amid Growing Crypto ETF Momentum

On June 10, 2025, the U.S. Securities and Exchange Commission (SEC) initiated a review of a rule change proposal by NYSE Arca to list and trade the Bitwise Bitcoin and Ethereum ETF, a hybrid fund combining two leading cryptocurrencies.

This development, which includes a 21-day public comment period, signals continued regulatory engagement with digital assets as the crypto market gains mainstream traction.

Bitwise’s Hybrid Bitcoin-Ethereum ETF Proposal

The Bitwise Bitcoin and Ethereum ETF is designed to provide investors with exposure to both Bitcoin and Ethereum, allocated based on their relative market capitalizations—approximately 83% Bitcoin and 17% Ethereum as of the filing date.

This hybrid approach distinguishes it from single-asset ETFs, such as the Bitcoin spot ETFs approved in January 2024, offering a diversified entry point into the crypto market. The ETF aims to capitalize on the strong performance of Bitcoin and Ethereum in 2024, driven by institutional adoption and favorable regulatory shifts.

Bitwise Investment Advisers, LLC, a prominent crypto asset manager, serves as the sponsor of the trust, while Coinbase Custody Trust Company, a leading digital asset custodian, will handle the safekeeping of the ETF’s Bitcoin and Ethereum holdings.

The fund’s daily net asset value (NAV) will be calculated using the CME CF Bitcoin and Ethereum pricing benchmarks, ensuring transparent and reliable valuations. Authorized participants can create and redeem shares in cash, with a minimum block size of 10,000 shares, facilitating liquidity and accessibility.

Broader SEC Reviews: A Crypto-Friendly Shift

The SEC’s review of the Bitwise ETF is part of a broader wave of crypto ETF evaluations, reflecting a more open regulatory stance under new leadership.

For instance, the SEC has requested potential Solana ETF issuers to submit revised S-1 forms by the following week, with feedback expected within 30 days. The SEC is seeking updated language on in-kind redemptions and staking methodologies, suggesting openness to including staking as part of Solana ETFs. This follows the approval of Bitcoin spot ETFs in January 2024, which attracted billions in inflows and set a precedent for crypto investment products.

At the Crypto Task Force Roundtable on DeFi on June 9, 2025, Chairman Atkins emphasized a forward-looking approach, stating, “The American values of economic liberty, private property rights, and innovation are in the DNA of the DeFi movement. Blockchains are a creative and potentially revolutionary innovation.”

He highlighted the SEC’s commitment to fostering blockchain innovation while ensuring regulatory clarity, noting the Crypto Task Force’s role in gathering industry input to shape a “rational regulatory framework”.

Implications of Bitwise’s Hybrid ETF Review

The Bitwise ETF review underscores the crypto market’s maturation, with diversified products like this hybrid fund poised to attract both retail and institutional investors. The ETF’s structure, backed by Bitwise’s expertise and Coinbase’s secure custody, could pave the way for broader adoption if approved.

Meanwhile, the SEC’s concurrent reviews of other ETFs, such as XRP and Trump Media’s Bitcoin ETF filed in June 2025, highlight a competitive and dynamic landscape.

Some believe the crypto market is ready for more ETFs, with Bitwise’s hybrid model potentially leading the way, reflecting industry optimism.

However, the SEC’s 240-day review timeline and historical caution suggest approval is not guaranteed. Investors should monitor updates on the SEC’s website (sec.gov) or NYSE Arca’s EDGAR filings for developments. As the crypto ETF ecosystem evolves, the Bitwise Bitcoin and Ethereum ETF represents a pivotal step toward bridging digital assets with traditional finance.