The U.S. Securities and Exchange Commission (SEC) approved another Bitcoin and Ethereum exchange-traded fund (ETF) on Thursday.

This move gives investors a new way to gain exposure to the top two cryptocurrencies in a single regulated product.

The U.S. Securities and Exchange Commission (SEC) has approved another Bitcoin and Ethereum exchange-traded fund (ETF) on Thursday. This move gives investors a new way to gain exposure to the top two cryptocurrencies in a single regulated product.

The ETF, launched by Bitwise in partnership with the New York Stock Exchange (NYSE), will be weighted by market capitalization. It will begin trading on the NYSE Arca on Friday under the ticker “BITS.”

The approval comes after a long wait for cryptocurrency enthusiasts. In March 2023, the SEC finally gave the green light to spot Bitcoin ETFs, opening the door for a range of new products.

Now, investors will have multiple options beyond standalone Bitcoin ETFs, further diversifying their investment strategies in the cryptocurrency market.

Bitcoin Market Impact and Investor Interest

The approval of these ETFs also signals a shift in regulatory stance. Under U.S. President Donald Trump’s administration, the SEC appears to be taking a lighter approach toward crypto regulation.

This has led to a flurry of ETF applications for various digital assets, including meme coins like Dogecoin (DOGE) and blue-chip cryptos like Solana (SOL). The approval process for these applications is being closely watched by the crypto community.

The news of the joint Bitcoin and Ethereum ETF approval had a positive impact on the market. At the time of the announcement, Bitcoin (BTC) was trading at $46,300, up 2.8% on the day. Meanwhile, Ethereum (ETH) climbed 3.1% to $2,470.

Both Bitcoin and Ethereum saw a surge in trading volumes. BTC recorded $18 billion in 24-hour volume, while ETH saw $8.7 billion. This heavy activity reflects the strong interest from traders in these leading cryptocurrencies.

Solana and Hedera Futures Contracts Filed by Coinbase

In related news, major cryptocurrency exchange Coinbase is expanding its derivatives offerings. The exchange has filed to list futures contracts tracking Solana (SOL) and Hedera (HBAR).

This move comes as institutional investors are showing increasing demand for futures contracts linked to major altcoins. Both Solana and Hedera have had strong performances this year.

Solana (SOL) has been a standout performer, up 189% year-to-date, reaching a market cap of $42 billion. This impressive growth has made SOL one of the most valuable cryptocurrencies in the market.

Meanwhile, Hedera (HBAR) has also seen a substantial gain of 95% in the same period, despite having a more modest market capitalization of $3.9 billion.

The listing of futures contracts for these altcoins will likely increase trading volumes and further integrate them into the institutional cryptocurrency market.

Institutions Drive Solana, Hedera Gains

Solana and Hedera have both experienced remarkable growth in 2024, largely driven by increasing institutional interest.

Solana, known for its fast and low-cost transactions, has seen its price skyrocket by 189% year-to-date. This surge has propelled SOL to a market capitalization of $42 billion, making it one of the most valuable cryptocurrencies.

On the other hand, Hedera, a distributed ledger technology focused on enterprise use cases, has also seen a substantial gain of 95% in the same period. Despite having a smaller market cap of $3.9 billion, HBAR has attracted attention with its high throughput and low fees.

This strong performance has positioned both Solana and Hedera among the best-performing cryptocurrencies in the market this year. As institutional demand for derivatives linked to these altcoins continues to grow, their trading volumes are expected to reach even greater heights.

More Diversified Crypto ETFs Expected

With the SEC now approving joint Bitcoin and Ethereum ETFs, asset managers are likely to push for more diversified products. A multi-crypto ETF that includes Solana, Dogecoin, or even smaller assets like Avalanche (AVAX) could be next in line for approval.

This move would further expand the options available to investors who want to gain exposure to a broader range of cryptocurrencies through regulated channels. As the cryptocurrency market continues to evolve, we can expect to see more innovative and diverse products emerging in the ETF space.

For investors, the availability of regulated crypto ETFs offers a safer way to gain exposure to the market. Rather than dealing with unregulated exchanges or complex custody solutions, they can invest through traditional brokerage accounts, enjoying the benefits of ETF liquidity and transparency.