Yesterday’s crypto market crash saw some positive news as the US Securities and Exchange Commission (SEC) approved two new exchange-traded funds (ETFs). These unique ETFs will track a combination of Bitcoin (BTC) and Ethereum (ETH). They were developed by Franklin Templeton and Hashdex and are scheduled to launch in January 2025.
This marks the first time the SEC has approved such a hybrid Bitcoin-Ethereum index ETF. Both ETFs will hold a mix of spot BTC and ETH, with the current proportion being 80% BTC and 20% ETH. However, they may expand to include other cryptocurrencies in the future, subject to regulatory approval. The SEC noted that Franklin Templeton’s application was granted expedited approval on December 18th.
Nate Geraci, President of The ETF Store, shared his thoughts on the matter: “This will be interesting to see if BlackRock or others attempt to piggyback on this and launch similar ETFs. Regardless, I expect there will be significant demand for these products. Advisors love diversification, especially in emerging asset classes like crypto.”
It seems that the SEC’s decision to approve these crypto index ETFs aligns with previous approvals of spot Bitcoin and spot Ethereum ETFs in terms of the trusts’ structure and operating terms.
The Exchange Act requirements set forth by the SEC mandate that issuers must implement measures to protect against fraud, manipulation, and risks to investors. Hashdex initially filed its S-1 with the SEC in August, followed by Franklin Templeton in August as well. Both companies made subsequent amendments to their applications before final approval.
Notably, Hashdex’s ETF will utilize custodial services provided by Coinbase, BitGo, Fidelity, and Gemini. Similarly, Franklin Templeton’s ETF will partner with BitGo and Coinbase for custody services. With the recent surge in popularity of crypto ETFs, it appears that they may soon overtake spot gold ETFs in terms of net assets held.
This development comes amid growing acceptance of regulated crypto products across various jurisdictions worldwide.
Source
As per reported by www.bitcoininsider.org
