Bitwise Submits S-1 Filing for ETF Holding Bitcoin and Ether

The activity surrounding crypto ETFs is increasing. Bitwise filed an S-1 registration with the SEC to launch a balanced Bitcoin and Ethereum ETF, while VanEck also recently announced that it will be extending fee waivers for its Bitcoin ETF to maintain a competitive edge in the booming market that surpassed $100 billion in net assets. Bitcoin’s on-chain activity is nearing 1 million daily active users, which indicates that there is still growing retail adoption. Due to this, some analysts are optimistic about Bitcoin reaching $100,000 by the year’s end.

Bitwise Files S-1 Registration for Bitcoin and Ether ETF

NYSE Arca filed with the United States Securities and Exchange Commission (SEC) to list and trade shares of a new exchange-traded product (ETP) from asset management firm Bitwise. The product will provide balanced exposure to Bitcoin (BTC) and Ethereum (ETH). 

In a Form S-1 registration statement that was submitted on Nov. 26, Bitwise outlined its plans to launch a spot Bitcoin and Ether ETP, which will hold both assets in proportions reflecting their relative market caps. The product is designed to offer investors an accessible way to get exposure to the two largest cryptocurrencies. While Bitwise did not reveal a specific launch date, it stated that trading would start “as soon as practicable” after the filing’s approval.

The SEC’s decision on the proposed ETP is still uncertain, particularly considering the anticipated leadership changes in the regulatory body. Chair Gary Gensler is set to step down on Jan. 20. His successor will be chosen by President-elect Donald Trump, who will take office in January. With the recent Republican victories in the House of Representatives and Senate, industry leaders speculate that the regulatory landscape could become a lot more favorable to cryptocurrency starting in 2025.

Bitwise’s filing happened during a time of increased activity in the crypto ETF space. On Nov. 21, the firm also submitted a registration for a spot Solana ETF, while other asset managers recently proposed ETFs tied to Hedera and XRP. 

Earlier this year, the SEC approved spot Bitcoin ETFs in January, followed by spot Ether ETFs in May. This could suggest that the regulator is becoming a lot more willing to consider these kinds of crypto products. However, how the SEC will handle these new filings under its leadership changes remains to be seen.

VanEck Extends Bitcoin ETF Fee Waiver

VanEck also recently announced an extension of the fee waiver for its VanEck Bitcoin ETF (HODL) to try and attract more investors in the competitive Bitcoin ETF market. According to the asset manager’s statement on Nov. 25, the waiver will now cover management fees for the ETF’s first $2.5 billion in net assets until Jan. 10 of 2026. This is a big increase from the previous $1.5 billion threshold, which was set to expire in March of 2025. 

VanEck’s HODL ETF charges a baseline management fee of 0.20%, which, while competitive, is slightly higher than the 0.15% annual sponsor fee that is charged by Grayscale Bitcoin Mini Trust. Many crypto ETFs, including those tied to Bitcoin and Ethereum, initially waived some or all of their management fees when they were launched, and many set an expiration period of six months to a year. VanEck’s move to extend its fee waiver suggests that the company is taking steps to maintain its competitive edge and to encourage investors to consider Bitcoin as part of their portfolios.

Currently, VanEck Bitcoin ETF manages approximately $1.22 billion in net assets, which positions it behind several larger competitors. The leading spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), amassed $46 billion in assets under management, according to BlackRock. 

Bitcoin ETF flow (Source: Farside Investors)

The broader Bitcoin ETF market experienced very impressive growth, which was driven by increased adoption and investor interest, particularly after the U.S. presidential election victory of crypto-friendly Donald Trump. Bitcoin ETFs even surpassed $100 billion in net assets for the first time on Nov. 21, according to Bloomberg Intelligence data. 

Bryan Armour, the director of passive strategies research at Morningstar, attributed the growth to widespread Bitcoin adoption and the appeal of ETFs as a much simpler and cost-effective way for new investors to access the cryptocurrency. Armour pointed out that ETFs provide benefits like cheaper trading, lower fees, and secure Bitcoin storage, which appeals to those who are unfamiliar with setting up wallets or navigating crypto exchanges.

Bitcoin Nears 1M Daily Active Users

Bitcoin is nearing 1 million daily active users for the first time since 2019. This could suggest that here is a resurgence in adoption that could pave the way for the crypto to surpass the $100,000 milestone. Blockchain analytics platform IntoTheBlock pointed out BTC’s growth in on-chain activity, and shared that its daily active addresses are approaching a million. 

Analysts see this as a shift from dominance by large investors, or whales, to broader retail participation. Anndy Lian, a blockchain expert, shared that this transition could lead to more stable price movements, as retail investors typically behave differently from whales whose large trades very often cause a lot of price volatility.

The increase in active addresses also indicates a healthier and more robust Bitcoin network, which is promising for long-term investors. Despite a recent 6% correction to $92,400 due to selling from long-term holders, the growing network activity is still a bullish indicator. Bloomberg analyst Eric Balchunas pointed out that these corrections are not linked to ETF outflows, and retail adoption is still gaining momentum.

Bitcoin’s price action over the past month (Source: CoinMarketCap)

Trading volumes have stayed relatively stable as well, and Blockchain.com data shows a daily average trading volume of $817 million on Nov. 26. This was down from the $1.58 billion that was recorded on Nov. 14. 

Anndy Lian suggested that while on-chain activity is increasing, it has not yet translated into buying or selling pressure. Ryan Lee, chief analyst at Bitget Research, warned that profit-taking and liquidation risks from leveraged positions exceeding $3.4 billion could contribute even more to price volatility.

The rising number of active users and solid on-chain foundations fueled optimism among some analysts that Bitcoin could reach $100,000 by the end of November. IntoTheBlock revealed that more than 458,000 addresses accumulated 344,000 BTC above $96,700, creating a strong base for upward momentum. This optimism is also supported by Bitcoin’s rally after Donald Trump’s U.S. presidential election victory.

According to Isaac Joshua, the CEO of Gems Blockchain Launchpad, the current momentum, coupled with Bitcoin’s growing adoption as a hedge against inflation and a weakening dollar, could attract the $500 billion in additional inflows needed to push the price beyond $100,000.

Meanwhile, Bitcoin ETFs saw strong inflows, with $2.4 billion added to the funds last week. This contrasted sharply with $2 billion in outflows from China ETFs amid economic concerns.