The U.S. Securities and Exchange Commission (SEC) has granted approval for Bitcoin-Ether ETFs from Hashdex and Franklin Templeton, marking a significant milestone in cryptocurrency investment products. These ETFs will track indices holding spot Bitcoin (BTC) and spot Ether (ETH), offering investors diversified exposure to leading digital assets.
Key Approvals and Fund Structures
Hashdex Nasdaq Crypto Index US ETF
- Exchange: Nasdaq Stock Market
- Index: Nasdaq Crypto US Settlement Price Index (BTC & ETH)
- Approval Date: December 19
Franklin Crypto Index ETF
- Exchange: Cboe BZX
- Index: Institutional Digital Assets Index (BTC & ETH)
- Approval Basis: Accelerated review of updated filings (December 18)
The SEC noted that both proposals share "substantially similar" trust structures and operational terms to previously approved spot Bitcoin ETPs and Ether ETPs, complying with the Exchange Act to prevent fraud, protect investors, and ensure market integrity.
Market Implications and Expert Reactions
Nate Geraci, President of The ETF Store, highlighted the potential ripple effect of these approvals:
👉 "Will BlackRock or others attempt to ride this wave with similar ETFs? Demand for diversified crypto exposure is likely to surge."
- Advisor Preference: Diversification in emerging asset classes like crypto is increasingly favored.
- Pending Proposals: NYSE Arca’s filings for Bitwise ETF and Grayscale Crypto Index ETF (holding multiple spot cryptocurrencies) remain under review.
FAQ Section
Q1: What makes these ETFs unique?
A: They are the first combined Bitcoin-Ether ETFs, offering exposure to both assets under a single fund structure.
Q2: How do these differ from futures-based ETFs?
A: These track spot prices (physical holdings) rather than derivatives, reducing contango risks.
Q3: When will trading begin?
A: Pending final operational steps, likely within weeks post-approval.
Regulatory Timeline and Future Outlook
- August 2023: Franklin Templeton initially filed for its ETF; approval was deferred on November 20.
- October 2023: SEC requested more time to review Hashdex’s initial amended filing.
- December 2023: Accelerated approvals signal SEC’s growing comfort with multi-crypto ETFs.
👉 Explore how these ETFs could reshape institutional crypto investments.
Conclusion
The SEC’s greenlight for Hashdex and Franklin Templeton paves the way for broader cryptocurrency adoption in traditional finance. As competitors like BlackRock monitor demand, the market may soon see more innovative crypto index products.