The SEC approved Bitwise's form 19b-4, which was filed with the SEC last November. The registration application (S-1) for the ETF still needs to be approved before the product can start trading. The initial approval for Bitwise comes a month after the SEC cleared similar products from Franklin Templeton and Hashdex.

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.

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

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.