Hashdex has applied to the US Securities and Exchange Commission (SEC) for a combined exchange-traded fund (ETF) that tracks both Bitcoin and Ethereum. If approved, the ETF will be structured based on market capitalization, with Bitcoin making up 70.54% and Ethereum making up 29.46%. While the ETF will only invest in these two cryptocurrencies at first, the application includes language that would allow Hashdex to add other digital assets in the future, should they be approved by the SEC.

This move is seen as significant because it would allow investors to diversify their portfolios by investing in both of the largest cryptocurrencies at once. It would also set a precedent for other ETFs that track multiple digital assets. Hashdex already offers several index funds that track various segments of the cryptocurrency market, including DeFi, Web3, and Metaverse index funds, each containing over a dozen different cryptocurrencies.

If the SEC approves the application, it could be a major step forward for cryptocurrency ETFs, which have been gaining popularity in recent months. While the SEC has yet to approve any ETFs that track cryptocurrencies directly, it has given the green light to several ETFs that track cryptocurrency futures. The SEC has until March 2025 to respond to Hashdex's application, and many are watching to see if this could be the first of many multi-asset cryptocurrency ETFs.

The application is structured in such a way that it would allow Hashdex to transition the fund's investment strategy to include other crypto assets, should they be approved by the SEC. This would make the ETF a market-weighted asset, with the percentage of each asset adjusted based on its market capitalization. This would be the first ETF of its kind, and could potentially pave the way for other multi-asset cryptocurrency ETFs.

The SEC's decision on this application could have major implications for the cryptocurrency market as a whole. If approved, it could lead to a surge in investment in both Bitcoin and Ethereum, as well as other digital assets that are added to the fund in the future. It could also lead to a shift in the way that ETFs are structured, with more funds tracking multiple assets rather than just one.