After multiple delayed reviews, the United States Securities and Exchange Commission (SEC) has finally given its regulatory greenlight the first spot exchange-traded funds tracking both Bitcoin and Ethereum.
The approval extends the access of traditional institutional investors to the two largest crypto assets through spot-based investment products.
Franklin Templeton, Hashdex Hybrid ETH-BTC ETFs Approved
According to a Dec. 19 notice, the Securities and Exchange Commission approved the Hashdex Crypto Index US ETF, which will trade on the Nasdaq stock market. The Wall Street top financial cop also greenlighted the Franklin Crypto Index ETF to be listed on the Cboe BZX Exchange.
“The proportion of bitcoin and ether to be held by each Trust will be based on free-float market capitalizations,” the notice reads.
Franklin Templeton’s updated filing, submitted earlier on Wednesday, was approved on an “accelerated basis” due to compliance with existing commodity-based trust share structures.
The SEC also stated that the proposals satisfied the criteria of the Exchange Act, which requires ETF providers to have sufficient rules to deter fraudulent and manipulative actions and protect investors, among other requirements.
More Dual Crypto ETFs Coming?
Nate Geraci, president of The ETF Store, observed in an X post that it would be “interesting” to see if other issuers, including Wall Street giant BlackRock, will seek to introduce similar investment products following the SEC’s recent approval.
“Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto,” Geraci added.
The regulatory green light comes amid a Federal Reserve-spurred crypto market rout. The leading cryptocurrency has fallen over 7.5% on the day to $94,301 as of press time. Solana’s SOL, ETH, and Cardano’s ADA have dropped as much as 17.2%. Meanwhile, the OG meme coin Dogecoin has tumbled by 20.6% over the last 24 hours at a current price of around $0.2861.
