The US Securities and Exchange Commission (SEC) has granted initial approval to Bitwise Asset Management's exchange-traded fund (ETF) that tracks Bitcoin and Ethereum prices.
This approval, granted on January 30, is the first step in the process for the ETF to begin trading. However, Bitwise still needs the SEC to approve its pending registration application, known as a Form S-1, before the ETF can officially launch.
The Bitwise Bitcoin and Ethereum ETF will offer investors exposure to the spot price of both cryptocurrencies in a single fund, weighted by their market capitalizations.
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As of the filing date, Bitcoin makes up 83% of the fund's assets, while Ethereum accounts for the remaining 17%.
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The ETF will calculate the market capitalizations of these assets by multiplying their current outstanding supply by their respective reference prices.