After multiple review delays since June of this year, the U.S. Securities and Exchange Commission (SEC) has finally approved the first spot exchange-traded funds combining Bitcoin (BTC) and Ethereum (ETH).
According to documents released on Thursday, the SEC has authorized the Nasdaq Exchange to list Hashdex’s “Hashdex Nasdaq Crypto Index US ETF” and authorized the Cboe BZX Exchange to list Franklin Templeton’s “Franklin Crypto Index ETF.” The document shows that the proportion of Bitcoin and Ethereum held by the two cryptocurrency index funds will be calculated based on free float market capitalization.
Eric Balchunas, a senior ETF analyst at Bloomberg, expects the funds to launch in January next year with allocations of about 80% to Bitcoin and 20% to Ethereum to reflect current market caps.
The spot bitcoin/ether combo ETFs have been approved by SEC (as predicted). Launch likely in January. They’re mkt cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them. https://t.co/o2ri3XpqZi
— Eric Balchunas (@EricBalchunas) December 20, 2024
One of the main factors the SEC considers in its approval is a surveillance-sharing agreement, an agreement between exchanges to share trading data and critical market information to help detect and prevent cross-market fraud. Fraudulent and manipulative behavior.
ETF Store President Nate Geraci commented on the social platform He also noted that it will be worth watching to see if other cryptocurrency ETF issuers follow suit and launch similar products.
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