- SEC approves Bitwise’s Bitcoin and Ethereum ETF, expanding options for crypto investors.
- Bitcoin rose to $46,300 and Ethereum to $2,470 following the announcement, with trading volumes surging.
- Institutional interest in crypto futures grows, with Coinbase filing for Solana and Hedera futures.
The U.S. Securities and Exchange Commission (SEC) approved another Bitcoin and Ethereum exchange-traded fund (ETF) on Thursday. This move gives investors a new way to gain exposure to the top two cryptocurrencies in a single regulated product. The ETF, launched by Bitwise in partnership with the New York Stock Exchange (NYSE), will be weighted by market capitalization.
Bitwise’s ETF follows recent approvals of similar products from Hashdex and Franklin Templeton. Hashdex’s Crypto Index ETF offers exposure to a basket of cryptocurrencies. Franklin Templeton is set to launch its version later in January.
Since the SEC approved spot Bitcoin ETFs earlier this year, asset managers have been racing to expand their crypto offerings. Now, investors have multiple options beyond standalone Bitcoin ETFs.
Bitcoin Market Impact and Investor Interest
The approval of these ETFs signals a shift in regulatory stance. Under U.S. President Donald Trump’s administration, the SEC appears to be taking a lighter approach toward crypto regulation. This has led to a flurry of ETF applications for various digital assets, including meme coins like Dogecoin (DOGE) and blue-chip cryptos like Solana (SOL).
The move has also fueled market optimism. Bitcoin (BTC) was trading at $46,300 at the time of the announcement, up 2.8% on the day. Ethereum (ETH) climbed 3.1% to $2,470. Trading volumes surged, with BTC seeing $18 billion in 24-hour volume, while ETH recorded $8.7 billion.
Beyond ETFs, institutions are also eyeing the futures market. On the same day, Coinbase filed to list futures contracts tracking Solana (SOL) and Hedera (HBAR). This shows increasing institutional demand for derivatives linked to major altcoins.
Solana has been a standout performer, up 189% year-to-date, reaching a market cap of $42 billion. Hedera, with a more modest $3.9 billion market cap, has seen a 95% gain in the same period. Institutional interest in these assets could push trading volumes even higher.
With the SEC now approving joint Bitcoin and Ethereum ETFs, asset managers are likely to push for more diversified products. A multi-crypto ETF that includes Solana, Dogecoin, or even smaller assets like Avalanche (AVAX) could be next.
For investors, the availability of regulated crypto ETFs offers a safer way to gain exposure to the market. Rather than dealing with unregulated exchanges or complex custody solutions, they can invest through traditional brokerage accounts.
Disclaimer:
The information provided on this website is intended for general informational purposes only and does not constitute professional financial advice. Users should conduct their own research and consult with a licensed financial advisor before making any investment decisions. By using this site, you acknowledge and accept that you are solely responsible for your investment choices and any associated risks.
