The U.S. Securities and Exchange Commission (SEC) has just approved the first two ETF funds combining Bitcoin and Ethereum after multiple extensions of review since June this year. This is a significant advance for the cryptocurrency financial market as these exchange-traded funds offer diversification within a single product.
Approval Details:
Approved ETF Funds:
Hashdex Nasdaq Crypto Index US ETF on the Nasdaq.
Franklin Crypto Index ETF on the Cboe BZX Exchange.
Asset allocation ratio: Based on market capitalization, with an expected 80% in $BTC and 20% in $ETH .
Requirements and Regulations:
The funds must ensure transparency regarding their portfolio and pricing.
The index value is updated every 15 seconds during trading hours.
Both exchanges have the right to request delisting if the fund does not meet regulations.
Impact and Significance:
Positive signal from the SEC: This approval indicates that the SEC is increasingly confident in the dual asset model as long as it meets oversight and anti-fraud standards.
Market appeal: Experts believe this product will attract significant interest from investors, thanks to its diversification capabilities and applicability in investment portfolios.
Current market data: The Bitcoin ETF product from #BlackRock leads with $56 billion in assets under management, followed by Fidelity and Grayscale with about $20 billion each.
Future Forecast:
The new ETF funds are expected to launch in January 2025. Experts like Nate Geraci expect that diversification in an emerging asset class like crypto will create significant demand, while paving the way for similar products from other issuers.
Conclusion
The approval of these Bitcoin-Ethereum ETF funds not only marks an important step in the legalization of cryptocurrency but also opens up more diverse investment opportunities for traditional investors.