The Bitwise Bitcoin and Ethereum ETF from Bitwise Asset Management would seek to provide investors with a balanced exposure to the two digital assets.

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

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 capitalisation.

The structure of the fund will be similar to existing ETFs that hold either Bitcoin or Ether directly.

The US regulator in a filing approved the so-called form 19b-4, one step in the overall process that would allow the product to start trading. The Bitwise fund still needs an approval for its pending registration application known as an S-1 — both steps are required to start trading.