The U.S. Securities and Exchange Commission (SEC) has approved spot-based Bitcoin and Ethereum ETFs offered by Hashdex and Franklin Templeton. These ETFs are designed to provide institutional access to the two largest digital assets.
The Approved ETFs: What They Offer
The SEC approved rule changes proposed by Nasdaq and Cboe BZX, allowing for 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 approvals cover two funds:
* Hashdex Nasdaq Crypto Index US ETF * Franklin Templeton Crypto Index ETF
Franklin Templeton’s ETF tracks the Institutional Digital Asset Index, which reflects the performance of Bitcoin and Ethereum. Hashdex’s ETF is tied to the Nasdaq Crypto US Settlement Price Index, also focused on Bitcoin and Ethereum. Both funds prioritize transparency, regulatory compliance, and investor protection.
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. He expects the launch to occur 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.
Impact on Market and Investors
The SEC's approval of spot 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 approval of spot Bitcoin and Ethereum ETFs by the SEC marks a significant step in the development of the cryptocurrency market, opening up opportunities for broad institutional involvement and offering new avenues for investors seeking more balanced investments in digital assets.
