The U.S. Securities and Exchange Commission (SEC) has approved spot-based ETFs on Bitcoin and Ethereum offered by Hashdex and Franklin Templeton, providing institutional access to the largest digital assets.
The Approved ETFs and Their Offerings
Nasdaq and Cboe BZX proposed rule changes that were approved by the SEC, enabling the listing and trading of ETFs. The main approved funds include Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF, both prioritizing transparency, regulatory compliance, and investor protection. Franklin Templeton’s ETF tracks the Institutional Digital Asset Index for Bitcoin and Ethereum, while Hashdex’s fund is tied to the Nasdaq Crypto US Settlement Price Index.
Industry Reactions
Popular ETF analyst Eric Balchunas noted that both ETFs are likely to allocate around 80% to Bitcoin and 20% to Ethereum. Nate Geraci, president of The ETF Store, speculated that other firms like BlackRock might follow suit, highlighting the anticipated demand from financial advisors for these products.
Impact on Investment Strategies
The approval of Bitcoin and Ethereum ETFs brings institutional credibility to the crypto market, allowing traditional investors to diversify portfolios without directly holding volatile digital assets. Artist Chad Steingraber highlighted the potential inclusion of XRP in the Hashdex ETF, which sparked interest among crypto enthusiasts.
The SEC's approval of spot Bitcoin and Ethereum ETFs marks a significant step in integrating cryptocurrencies into the traditional financial system, potentially spurring wider institutional interest and supporting industry growth.
