"SEC Greenlights Bitcoin & Ethereum ETF: A Crypto Milestone"

The U.S. Securities and Exchange Commission (SEC) has taken a significant step towards wider acceptance of cryptocurrency investment vehicles by approving a key part of an application for a new exchange-traded fund (ETF) that tracks Bitcoin and Ethereum, the two largest cryptocurrencies. Bitwise Asset Management's Bitcoin and Ethereum ETF aims to provide investors with exposure to both digital assets, weighted by their respective market capitalizations.

The SEC has approved the fund's 19b-4 filing, an essential step in the approval process. However, Bitwise still requires the SEC's clearance for its S-1 registration application before trading can commence. The "Bitwise Bitcoin and Ethereum ETF" will offer exposure to Bitcoin (BTC) and Ether (ETH) in a single fund, weighted by their relative market capitalizations—83% BTC and 17% ETH as of the filing date. The ETF will determine market capitalization by multiplying pricing benchmarks by circulating supply, according to the filing.

Approval comes less than two weeks after a crypto-friendly acting chair took over the SEC. Commissioner Mark Uyeda took over as acting head of the SEC while the agency awaits Senate confirmation of President Donald Trump's nominee for the permanent role, Paul Atkins. Bitwise Investment Advisers will manage the fund, with Coinbase providing custody and Bank of New York Mellon serving as the cash custodian, administrator, and transfer agent.

The SEC's approval of Bitwise's ETF follows a trend of increasing institutional interest in digital assets as regulatory frameworks evolve. This new ETF underlines a growing trend in the crypto market, showcasing the increasing acceptance of cryptocurrency investment vehicles. According to Bitwise, "the path to full mainstream crypto adoption is clearer than ever," highlighting optimism amid the evolving regulatory landscape.

The SEC's initial approval of the Bitwise Bitcoin and Ethereum ETF represents a critical juncture in the journey of cryptocurrency into traditional finance. Enthusiasts have long awaited regulatory acceptance, and this ETF aims to combine exposure to both Bitcoin (BTC) and Ether (ETH) in a single investment vehicle. By proposing a fund weighted according to market capitalizations, Bitwise is aligning itself with conventional ETF structures, potentially attracting a diverse range of investors looking for simplified access to digital assets.

The methodology behind the Bitwise ETF is significant. The fund