The U.S. Securities and Exchange Commission (SEC) approved Bitcoin and Ethereum ETFs offered by Hashdex and Franklin Templeton, granting institutional access to major cryptocurrencies.
Details of Approved ETFs
The SEC approved rule changes proposed by Nasdaq and Cboe BZX, allowing the listing and trading of these ETFs. The commission emphasized that the funds meet Exchange Act criteria, requiring measures to prevent fraud and protect investors. The approved funds include the Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF. Franklin Templeton’s ETF tracks the Institutional Digital Asset Index, reflecting the performance of Bitcoin and Ethereum, while Hashdex’s ETF is tied to the Nasdaq Crypto US Settlement Price Index, focusing on the same assets.
Industry Reactions
Popular ETF analyst Eric Balchunas noted that both ETFs are market cap-weighted, likely allocating around 80% to Bitcoin and 20% to Ethereum. The launch is expected in January. Nate Geraci, president of The ETF Store, speculated that other firms, including BlackRock, might follow suit. 'There will be meaningful demand for these products. Advisors love diversification, especially in an emerging asset class like crypto,' he commented.
Future Prospects
The approval of Bitcoin and Ethereum ETFs brings institutional credibility to the crypto market. It allows traditional investors to diversify portfolios without directly holding volatile digital assets. This change is particularly crucial for financial advisors seeking regulated, transparent options for clients interested in cryptocurrencies.
The creation of Bitcoin and Ethereum ETFs marks a significant step for institutional investors and could spur further changes in the crypto industry.
