The U.S. Securities and Exchange Commission (SEC) has approved the first dual Bitcoin and Ethereum Exchange-Traded Funds (ETFs) from Hashdex and Franklin Templeton.
This approval is an important step for institutional investors, giving them simpler access to the top two cryptocurrencies with spot-based investment options. The Franklin Templeton Crypto Index ETF and the Hashdex Nasdaq Crypto Index US ETF have both been approved by regulators.
Franklin Templeton’s application was processed faster because it met the standards for commodity-based trusts. Nasdaq and Cboe BZX changed their rules, making it easier to list these funds.
The Hashdex ETF will start with Bitcoin and Ethereum, but it might add other cryptocurrencies like XRP in the future. After some earlier delays, the SEC has now approved Hashdex’s filings.
Experts think upcoming leadership changes in Washington might speed up the approval process. The ETFs will launch in January 2024, with a portfolio of about 80% Bitcoin and 20% Ethereum.
Even though crypto markets can be unpredictable, and Bitcoin has seen a big price drop recently, the approval of these ETFs shows that digital assets are becoming more accepted in mainstream finance. Experts think Litecoin ETFs might get approved soon, but Solana and XRP ETFs could be delayed because of regulatory issues.
The SEC’s changing view on cryptocurrency, especially with Commissioner Caroline Crenshaw likely leaving, hints at a possible move towards a more positive perspective on crypto ETFs. This development shows how cryptocurrency is becoming part of traditional finance, opening up new possibilities for investing in crypto.
