In December 2024, the U.S. Securities and Exchange Commission (SEC) officially approved the first batch of 'Bitcoin + Ethereum' hybrid exchange-traded funds (ETFs), issued respectively 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 newly approved hybrid ETFs are the Hashdex Nasdaq Crypto Index US ETF (Nasdaq) and the Franklin Crypto Index ETF (Cboe BZX), 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; otherwise, they will face the risk of delisting. This measure aims to protect investor interests and ensure the healthy development of the market.
According to SEC regulations, these two ETFs will simultaneously hold Bitcoin and Ethereum, with the asset allocation ratio dynamically adjusted according to the free-floating market capitalization. This means that as the market fluctuates, the ETF's portfolio will be regularly adjusted to reflect the latest market values of Bitcoin and Ethereum. Analysts predict that Bitcoin’s share will be about 80%, while Ethereum’s share will be about 20%, and this design can reflect the relative market values of the two assets.
It is worth noting that launching such products in the U.S. carries 'extraordinary' significance. The SEC's regulation of crypto assets has not been particularly friendly, and this approval of hybrid ETFs may indicate a gradual easing of its regulatory policies. The rise of cryptocurrency ETFs in the past year is a significant change. With the improvement of the regulatory environment and the gradual maturation of the market, more and more investors are beginning to view them as a long-term investment.
Before this approval, financial markets had already shown a strong growth trend in the demand for cryptocurrency ETFs. According to the latest data, the scale of cryptocurrency ETFs has exceeded $135 billion. The rapid development of this market is attracting more and more investors who wish to reduce risk through diversified portfolios. The launch of this hybrid ETF will further stimulate market demand and attract more funds into the cryptocurrency sector.
Most analysts believe that the demand for such hybrid products will be substantial, especially against the backdrop of a continuously improving crypto market. As the prices of Bitcoin and Ethereum continue to rise, investor interest in these two major digital assets has intensified. Furthermore, with Bitcoin prices breaking the $100,000 mark and setting new highs consecutively, this surge has attracted a large influx of investors into the market, further driving the demand for hybrid ETFs.
Moreover, as the market's recognition of cryptocurrency continues to rise, more institutions are beginning to pay attention to cryptocurrencies and consider including them in their portfolios. 2025 is expected to be a crazy year. Many large financial institutions may take this opportunity to launch similar ETF products, such as BlackRock and other well-known financial institutions. 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' hybrid ETFs approved by the U.S. SEC will bring new vitality to the cryptocurrency market. This not only meets the market demand for diversified investment products but also further promotes the legalization process of crypto assets. As investor interest continues to grow, future market dynamics will be even more worthy of attention.
Meanwhile, investors should remain cautious when entering this market and manage their risks effectively. Cryptocurrency investment carries high risks, with significant price volatility that may lead to losses for investors. Therefore, it is recommended to fully understand market dynamics and potential risks before considering investments. As 2025 approaches, the cryptocurrency market will enter a new stage full of opportunities and challenges.
