The SEC has approved Bitcoin and Ethereum spot ETFs from Hashdex and Franklin Templeton, offering institutional access to major digital assets.
Approved ETFs and Their Features
The SEC approved rule changes proposed by Nasdaq and Cboe BZX, allowing the listing and trading of these ETFs. Two ETFs have been approved: Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF. Franklin Templeton's ETF tracks the Institutional Digital Asset Index, while the Hashdex fund is tied to the Nasdaq Crypto US Settlement Price Index. Both funds emphasize transparency and investor protection.
Industry Reactions
ETF analyst Eric Balchunas noted that both funds are market cap-weighted, with approximately 80% in Bitcoin and 20% in Ethereum. He expects their launch in January. Nate Geraci, president of The ETF Store, speculated that other firms like BlackRock might follow suit. He commented on the meaningful demand for such products due to advisors' love for diversification.
Impact on the Crypto Market
The approval of Bitcoin and Ethereum spot ETFs brings institutional credibility to the crypto market, enabling traditional investors to diversify portfolios without directly holding cryptocurrencies. This is crucial for financial advisors looking for regulated and transparent options for clients interested in digital assets.
The SEC's approval of Bitcoin and Ethereum spot ETFs by Hashdex and Franklin Templeton opens new opportunities for institutional investors and underscores the growing significance of cryptocurrencies in the financial world.
