SEC Approves Dual Bitcoin and Ethereum ETFs From Hashdex and Franklin Templeton

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As an analyst with over two decades of experience in the financial markets, I must say that the recent approval of combined Bitcoin and Ethereum ETFs by the SEC is a significant stride forward for the crypto industry. This development not only expands institutional access to these two largest cryptocurrencies but also sets a precedent for future ETF approvals.

The Securities and Exchange Commission (SEC) has given its approval for joint Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton. This decision increases the availability of these two leading cryptocurrencies for institutional investors through investment products that directly involve buying and selling the coins in the spot market.

The Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF received regulatory clearance, with the latter benefiting from an expedited review. 

Combined Bitcoin and Ethereum ETFs Approved after Consecutive Delays

Franklin Templeton’s recent ETF filing, submitted today, was swiftly approved because it adhered closely to the well-established norms for commodity-based trust structures.

As a researcher, I can share that per the official documentation, the Securities and Exchange Commission (SEC) has given their approval for the proposed rule modifications put forth by both Nasdaq and Cboe BZX. These alterations aim to streamline the process for listing and trading of these particular funds.

Chad Steingraber mentioned the recently approved Hashdex Crypto Index ETF, stating that initially it will consist of Bitcoin (BTC) and Ethereum (ETH), with plans to add more cryptocurrencies such as XRP in the future.

Initially, Hashdex submitted an application for its ETF in June; however, the Securities and Exchange Commission (SEC) delayed their decision on two separate occasions, stating it needed time for regulatory discussions. Some analysts speculate that potential leadership changes in Washington could have sped up the recent approvals.

As a researcher, I’ve noted that the anticipated launch is slated for January. The market capitalization weighting of this ETF approximates an 80/20 split between Bitcoin and Ethereum. It’s worth mentioning that Hashdex and Frankie are trailblazers in this field, which is commendable.

Simultaneously, these ETFs receive approval during a turbulent phase in the cryptocurrency market. Previously reported by BeinCrypto, approximately $1 billion worth of crypto positions were liquidated within the past day.

Bitcoin’s price dropped by more than 8% today, falling from $105,000 to below $96,000.

Are Litecoin ETFs Next?

Just a few days ago, Bloomberg’s analysts foresaw the approval of both Bitcoin and Ethereum ETFs, and amazingly, this prediction came to pass. They further speculate that the Securities and Exchange Commission will soon authorize Litecoin ETFs as well.

Although institutional investors may not show high interest in Long-Term Care (LTC), it’s important to note that Litecoin originated as a spin-off from Bitcoin, making it a possible asset subject to U.S. commodity regulations.

As an analyst, I find myself observing uncertainties persisting around potential ETFs for assets like Solana and XRP. However, with Paul Atkins now leading the charge, there’s reason to believe that the Securities and Exchange Commission (SEC) might adopt a more accommodating stance towards crypto ETFs. The recent movements within the SEC hint at a shift in their approach, which could pave the way for these products in the near future.

Yesterday, the Senate Banking Committee chose not to reappoint Commissioner Caroline Crenshaw, who has been an advocate for SEC Chair Gary Gensler’s stance against cryptocurrency. As a result, her term will expire in January, creating a vacancy within the agency’s management.

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2024-12-20 05:03