In December 2024, the U.S. Securities and Exchange Commission (SEC) officially approved the first batch of 'Bitcoin + Ethereum' mixed exchange-traded funds (ETFs), issued by Hashdex and Franklin Templeton, after nearly six months of review. This approval not only brings new investment options to the cryptocurrency market but also signifies that the legalization process of crypto assets is accelerating.
The two mixed ETFs approved this time are the Hashdex Nasdaq Crypto Index US ETF (Nasdaq Stock Exchange) and the Franklin Crypto Index ETF (Cboe BZX Exchange), which are expected to officially start trading in January 2025. However, the SEC requires that these two ETFs must continuously meet listing requirements and maintain transparency in their portfolios and pricing, or they will face the risk of delisting. This measure aims to protect investor interests and ensure healthy market development.
According to SEC regulations, these two ETFs simultaneously hold Bitcoin and Ethereum, and the asset allocation ratio will be dynamically adjusted based on free-floating market capitalization. This means that as market fluctuations occur, the ETFs' portfolios will be regularly adjusted to reflect the latest market values of Bitcoin and Ethereum. Analysts expect that Bitcoin's proportion will be about 80%, while Ethereum's will be around 20%. This design can reflect the relative market value of both assets.
It is worth noting that launching such products in the United States has 'extraordinary' significance. The SEC's regulation of crypto assets has not been friendly, and this approval of mixed ETFs may indicate a gradual loosening of its regulatory policy. The rise of cryptocurrency ETFs over the past year is a significant change. Now, with the improvement of the regulatory environment and the gradual maturation of the market, more and more investors are beginning to view it as a long-term investment.
Before this approval, there had already been a strong growth trend in the financial market's demand for cryptocurrency ETFs. According to the latest data, the scale of cryptocurrency ETFs has exceeded $135 billion, and the rapid development of this market is attracting more and more investors who hope to reduce risks through diversified portfolios. The launch of this mixed ETF will further stimulate market demand and attract more funds into the cryptocurrency field.
Most analysts believe that the demand for such mixed products from investors will be very high, especially against the backdrop of a continuously improving crypto market. As Bitcoin and Ethereum prices continue to rise, investor interest in these two major digital assets is becoming increasingly strong. Additionally, with Bitcoin's recent price breaking the $100,000 mark and continuously setting new highs, this surge has attracted a large number of investors into the market, further driving the demand for mixed ETFs.
Furthermore, as the market's recognition of cryptocurrencies continues to rise, more institutions are beginning to pay attention to cryptocurrencies and are considering incorporating them into their portfolios. It is expected that 2025 will be a crazy year. Many large financial institutions may seize this opportunity to launch similar ETF products, such as well-known financial institutions like BlackRock. This will not only enrich investors' choices but also promote the rapid development of the crypto market.
In summary, the first batch of 'Bitcoin + Ethereum' mixed ETFs approved by the U.S. SEC will bring new vitality to the cryptocurrency market. This not only meets the market's demand for diversified investment products but also further promotes the legalization of crypto assets. As investor interest continues to increase, future market dynamics will be more worthy of attention.
At the same time, investors entering this market still need to remain cautious and manage risks. Cryptocurrency investments carry high risks and their prices fluctuate wildly, which may lead to losses for investors. Therefore, it is recommended to fully understand market dynamics and potential risks before considering investments. With the arrival of 2025, the cryptocurrency market will embrace a new stage filled with opportunities and challenges.
