The SEC has partially approved a hybrid ETF that combines Bitcoin and Ethereum.

On January 30, the US Securities and Exchange Commission (SEC) approved a portion of a new exchange-traded fund (ETF) application that would track the two largest cryptocurrencies, bitcoin and ether.

Bitwise Bitcoin and Ether ETF is a fund from Bitwise Asset Management that seeks to provide investors with a balanced exposure to the two digital assets, weighted by market capitalization. The fund's structure would be similar to existing ETFs that directly hold bitcoin or ether.

The SEC approved a form 19b-4, a step in the entire process that allows the product to start trading. Bitwise's registration application S-1 still needs approval, and both steps need to be completed before trading can start.

Bitwise filed its application for a hybrid bitcoin and ether ETF after the US election in November. The Trump administration, led by the president, was friendly to cryptocurrencies. Trump promised supportive regulations for the digital asset industry and to make the US the "cryptocurrency capital of the world."

Now, more crypto portfolios are being proposed to the SEC. Nathan Dean, senior government analyst at Bloomberg Intelligence, said issuers are "exploring the boundaries of the SEC and submitting applications that include meme coins." For example, Bitwise proposed an ETF that tracks Dogecoin, a meme coin that is a token with no intrinsic value whose price fluctuates based on social media influence.