Brazilian asset management company Hashdex has filed an application for a combined exchange-traded fund (ETF) that will track both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The proposed fund will invest directly in the two digital assets and will be weighted by market value, meaning that the fund's holdings will be adjusted based on the relative market capitalization of each asset.

The application, filed with the U.S. Securities and Exchange Commission (SEC), is the latest development in the rapidly expanding cryptocurrency market. If approved, the fund will offer investors a new way to gain exposure to the cryptocurrency market, which has seen significant growth in recent years. The SEC has already approved several Bitcoin ETFs, and there are expectations that Ethereum ETFs will be approved soon.

Hashdex's application is notable because it is the first to propose a combined Bitcoin and Ethereum ETF. The company has a history of innovation in the cryptocurrency space, having launched a cryptocurrency index ETF in Brazil that tracks a diverse range of digital assets. The proposed combined ETF is seen as a natural extension of this strategy, offering investors a convenient way to invest in the two largest cryptocurrencies.

The SEC has 90 days to review Hashdex's application, with a final decision expected by March 2025. If approved, the ETF will be listed on the Nasdaq stock exchange and will be available to investors in the United States. The proposed fund has generated significant interest in the investment community, with many analysts predicting that it will be approved given the SEC's recent approvals of Bitcoin ETFs.

The proposed combined ETF is seen as a significant development in the cryptocurrency market, offering investors a new way to gain exposure to this rapidly expanding asset class. With the SEC's approval, the fund is expected to attract significant investment, providing a boost to the cryptocurrency market and further establishing it as a mainstream investment option.