SEC Accelerates Crypto ETF Approvals: Could Dogecoin & Litecoin Be Next?

• SEC approved Bitwise’s Bitcoin & Ether ETF in just 45 days, which has happened much faster than the usual 240-day process.
• Asset managers are filing for more ETFs, including Dogecoin and Litecoin, with increasing institutional interest.
• While the 19b-4 form is approved, the ETF still requires SEC clearance on its S-1 registration before trading begins.

The U.S. Securities and Exchange Commission (SEC) has granted initial approval for Bitwise’s exchange-traded fund (ETF) tracking Bitcoin and Ether. The accelerated approval allows NYSE Arca to list and trade shares of the hybrid fund. This follows the exchange’s filing of a 19b-4 form with the SEC in November 2024.

SEC Approves Bitwise ETF Listing

The SEC’s review determined that the proposal aligns with the Exchange Act and its rules and regulations. The approval document stated that the ETF meets the requirements to prevent fraudulent and manipulative practices in the market. The SEC has previously approved similar cryptocurrency ETF products from Hashdex and Franklin Templeton.

The investment fund Hashdex Crypto Index ETF contains multiple digital asset components, including Bitcoin and Ether. The Institutional Digital Asset Index directs the investment performance, which Franklin Templeton’s Franklin Crypto Index ETF tracks through its monitoring. Users receive direct market access through cryptocurrency spot exchanges under the investment structure of both funds.

More Crypto ETF Applications Underway

Amid increasing interest in crypto investment vehicles, asset managers have submitted multiple ETF applications. Among the filings are ETFs tracking Dogecoin and Litecoin. Bitwise recently submitted an application for a Dogecoin ETF in Delaware.

James Toledano, Chief Operating Officer at Unity Wallet, noted that altcoin ETFs could attract capital if favorable policies support them. However, he pointed out that their performance might be inconsistent compared to Bitcoin ETFs due to fluctuating interest in alternative cryptocurrencies.

SEC’s Accelerated Approval Process

The SEC’s expedited decision on Bitwise’s ETF has drawn attention from industry analysts. Bloomberg senior analyst Eric Balchunas stated that while the approval was anticipated, the timeline was shorter than expected. Typically, ETF approvals take up to 240 days, but this decision came within 45 days.
Despite the faster approval, the ETF must still receive SEC clearance for its S-1 registration before trading can begin. Balchunas also suggested that Litecoin ETFs could be next in line for approval.