- The SEC has approved the first combined Bitcoin & Ethereum ETFs
- Specifically, Hashdex’s Crypto Index US ETF and the Franklin Crypto Index ETF
- Presumably, they will combine BTC/ETH in an 80/20 proportion
The development of crypto ETFs amid a favorable crypto environment continues, and in anticipation of even more of their improvement following the departure of SEC Gary Gensler.
The SEC has approved the first combined Bitcoin & Ethereum ETFs, specifically Hashdex’s Crypto Index US ETF for trading on the Nasdaq and the Franklin Crypto Index ETF for the Cboe BZX exchange.
More About the Approval of the First Combined Bitcoin & Ethereum ETFs
A few months ago, Hashdex’s Crypto Index and Franklin Crypto Index filed applications for their combined crypto ETFs, but approval was delayed until November, and also went through several iterations after the SEC requested additional time to review the proposal.
Franklin Crypto Index applied in August, and due to its similarities to previously approved spot crypto exchange–traded products ETP received expedited review – but the decision was delayed until Nov. 20. Likewise, asset manager Hashdex filed its first application in October, but the SEC requested additional time to review the proposal and required several edits, after which Hashdex filed a second amended application on November 25.
And now both have received approval, specifically Hashdex’s Crypto Index US ETF to trade on Nasdaq and will follow the Nasdaq Crypto US settlement prices, while the Franklin Crypto Index ETF is approved for the Cboe BZX exchange and will follow the Institutional Digital Asset Index.
Presumably both funds will have Bitcoin and Ethereum allocations of 80% and 20% respectively, however for risk diversification purposes this may vary from market conditions and Hashdex has potential plans to expand by adding Solana and Cardano in the future.
President of The ETF Store, Nate Geraci, noted that it’s interesting that non-leading crypto ETFs have taken the initiative, and this may serve as an incentive for them and many others.
It may also serve as an incentive for other ETFs, as Bloomberg ETF analyst Eric Balchunas notes.
Conclusion
A fundamental advancement in the expansion of crypto investment vehicles that we are seeing more frequently with the new administration.
Is this just the beginning if we are expecting an improved crypto environment, or is this a short window of opportunity that exists due to the expectation of improvements?
We will only be able to assess when Donald Trump’s inauguration and the activity of his administration soon. Be aware and stay tuned.
