Breakthrough Approval for Dual-Asset Crypto ETFs
Just days after predicting a wave of cryptocurrency ETF approvals in 2025, Bloomberg analyst Eric Balchunas sees his forecast materialize early. The U.S. Securities and Exchange Commission (SEC) has granted landmark approvals for:
- Hashdex Nasdaq Crypto Index US ETF
- Franklin Crypto Index ETF
These pioneering funds will initially hold blended portfolios of Bitcoin (80% weight) and Ethereum (20% weight), marking the first SEC-approved products tracking multiple cryptocurrencies.
👉 Discover how crypto ETFs are transforming institutional investment
Key Features of the Approved ETFs
- Dual-Crypto Exposure: Combines Bitcoin's market stability with Ethereum's smart contract potential
- Index-Based Structure: Tracks the Nasdaq Crypto Index methodology
- Projected January 2025 Launch: Balchunas anticipates trading to begin Q1 2025
- First-Mover Advantage: Hashdex and Franklin Templeton gain competitive positioning
Notably absent from this approval batch is Bitwise's similar application, suggesting the SEC is taking a phased approach to multi-asset crypto products.
The Explosive Growth of Crypto ETFs
The ETF landscape has undergone radical transformation:
| Metric | 2023 Status | 2025 Projection |
|---|---|---|
| Total AUM | $0 (No spot ETFs) | $135B+ currently |
| Product Types | Single-asset only | Multi-crypto indexes |
| Institutional Participation | Limited | Major asset managers entering |
Nate Geraci, President of ETF Store, notes: "We've gone from zero to $135 billion in crypto ETF assets under SEC oversight - imagine what happens when regulatory attitudes evolve further."
Why This Matters for Investors
- Diversification Simplified: Single-ticket exposure to crypto's two largest assets
- Institutional Validation: SEC approval signals reduced regulatory risk
- Market Maturation: Indicates growing acceptance of crypto as an asset class
👉 Learn about portfolio allocation strategies for crypto ETFs
FAQ: Mixed Crypto Index ETFs
Q: How do these differ from Bitcoin-only ETFs?
A: They provide automatic rebalancing between BTC and ETH based on market capitalization, eliminating the need to manage two separate positions.
Q: What are the tax implications?
A: In the U.S., these are treated similarly to other ETFs - taxable events occur when selling shares or receiving distributions.
Q: Will more cryptocurrencies be added?
A: Fund prospectuses allow for index composition changes, potentially including additional assets as the SEC provides clarity on other coins.
Q: How does the 80/20 allocation work?
A: The weighting mirrors current market capitalizations, automatically adjusting quarterly to maintain proportion.
Risk Considerations
While representing a major step forward, investors should note:
- Volatility: Crypto assets may experience 20%+ price swings in single days
- Regulatory Uncertainty: Future SEC leadership could alter enforcement approaches
- Custody Risks: Unlike traditional ETFs, underlying assets require specialized digital storage
The approval of these blended crypto ETFs signals a new phase of institutional adoption, combining the growth potential of digital assets with the familiar structure of exchange-traded products. As the market prepares for January's launch, all eyes will be on how traditional finance continues adapting to blockchain-based investment vehicles.