The US Securities and Exchange Commission on Thursday approved part of an application for a novel exchange-traded fund that would track the two largest cryptocurrencies.

The U.S. Securities and Exchange Commission (SEC) has granted approval for Bitwise’s combined Bitcoin and Ethereum exchange-traded fund (ETF) on an accelerated basis.

Bitwise's product, launched with the New York Stock Exchange, gives investors exposure to both spot bitcoin (BTC) and ethereum (ETH), weighted by market capitalization. NYSE Arca filed a 19b-4 form with the SEC last November.

The Securities and Exchange Commission has approved part of an application by Bitwise Asset Management for a combined bitcoin (BTC-USD) and ether (ETH-USD) exchange-traded fund. The proposed Bitwise Bitcoin and Ethereum ETF will hold both spot bitcoin (BTC-USD) and spot ether (ETH-USD) weighted according to their market capitalizations,

The SEC approves NYSE's listing of Bitwise's hybrid ETF, offering exposure to both Bitcoin and Ethereum in one investment product.

The SEC has expedited the approval of Bitwise's combined $BTC and $ETH ETF, marking a stark contrast from the Gensler SEC's waiting period for approving similar offerings.

The Bitwise fund's asset allocation reflects market capitalization proportions, comprising 83% Bitcoin and 17% Ethereum.

The Bitwise Bitcoin and Ethereum ETF from Bitwise Asset Management would seek to provide investors with a balanced exposure to the two digital assets, weighted by their market capitalization. The structure of the fund will be similar to existing ETFs that hold either Bitcoin or Ether directly.