The U.S. Securities and Exchange Commission (SEC) has approved the launch of two spot-based Bitcoin and Ethereum ETFs, offered by Hashdex and Franklin Templeton. These funds provide institutional access to the largest digital assets.
The Approved ETFs: What They Offer
The SEC approved rule changes proposed by Nasdaq and Cboe BZX, enabling the listing and trading of these ETFs. The approved funds include the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. Franklin Templeton’s ETF tracks the Institutional Digital Asset Index, reflecting the performance of Bitcoin and Ethereum. Hashdex’s ETF is linked 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.
Potential Market Impact
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.
SEC's approval of Bitcoin and Ethereum-based ETFs marks a significant step in institutionalizing the crypto market, providing investors with convenient access to major digital assets.
