The U.S. Securities and Exchange Commission (SEC) has approved combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton. This move expands institutional access to the two largest Cryptocurrencies through spot-based investment vehicles.
Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF have received approval from regulators, with Franklin Templeton's ETF benefiting from a faster review process.
Combined Bitcoin and Ethereum ETFs Approved After Successive Delays
Franklin Templeton's updated ETF application, submitted earlier today, was quickly approved due to compliance with established standards for commodity-based trust funds.
According to filings, the SEC has approved proposed rule changes put forth by Nasdaq and Cboe BZX to facilitate the listing and trading of these funds.
"Hashdex Crypto Index ETF has just been approved by the SEC. Initially, it will only include BTC and ETH, but will expand to other assets over time... INCLUDING XRP!" famous artist Chad Steingraber said.
Hashdex filed for its ETF in June, but the SEC has delayed its decision twice, citing regulatory considerations. Analysts suggest that upcoming leadership changes in Washington may have spurred recent approvals.
"Launch could be in January. They are based on market capitalization, so about 80/20 btc/eth. Notably, Hashdex & Frankie are the first. Good for them," ETF analyst Eric Balchunas wrote.
Meanwhile, the approval for these ETFs coincides with a volatile phase in the Cryptocurrency market. According to TinTucBitcoin, more than 1 billion USD has been liquidated in the past 24 hours.
Bitcoin's price dropped more than 8% today, falling from 105K USD to below 96K USD.
Will There Be a Next Litecoin ETF?
Earlier this week, Bloomberg analysts predicted the licensing of dual Bitcoin and Ethereum ETFs, and that immediately became a reality. According to their forecasts, the SEC will approve the next Litecoin ETF.
Although there may not be significant demand for LTC from institutional investors, Litecoin is a version of Bitcoin and can be considered a commodity under U.S. regulations.
However, uncertainties still remain for other popular assets like Solana and XRP ETFs. With Paul Atkins taking over, the SEC may have a more positive outlook on Cryptocurrency ETFs. Recent developments within the SEC suggest that a shift is underway.
Yesterday, the Senate Banking Committee rejected the re-nomination of Commissioner Caroline Crenshaw. She has been a strong advocate for SEC Chairman Gary Gensler's anti-Cryptocurrency agenda. Crenshaw's term will end in January, leaving a vacant position on the agency's board.
