The U.S. Securities and Exchange Commission has approved two cryptocurrency index exchange-traded funds from Hashdex and Franklin Templeton, marking a notable development in the regulated digital asset market. Unlike single-asset crypto ETFs, the newly approved products combine exposure to both spot bitcoin (BTC) and spot ethereum (ETH), giving investors access to the two largest cryptocurrencies through one regulated vehicle.
The approvals are significant because they expand the structure of U.S. crypto ETF offerings beyond products tied only to bitcoin or ethereum. By introducing a hybrid model, the SEC has effectively opened the door to a broader category of crypto index-based investment vehicles that may appeal to investors seeking diversification within digital assets while remaining inside the traditional securities framework.
Two Products, Two Exchanges
Hashdex’s fund will launch as the Nasdaq Crypto Index US ETF and list on the Nasdaq stock market. The ETF is designed to track the Nasdaq Crypto US Settlement Price Index. Franklin Templeton’s product, called the Crypto Index ETF, will debut on the Cboe BZX Exchange and follow the Institutional Digital Asset Index.
According to the reported structure, both ETFs are composed of roughly 80% bitcoin and 20% ethereum. That allocation gives investors a portfolio tilted heavily toward bitcoin while still maintaining material exposure to ethereum, the second-largest digital asset by market relevance. The funds may also be expanded over time to include additional crypto assets, suggesting that these launches could become a foundation for more diversified index products in the future.
Why the Approval Matters
The SEC’s decision matters not only because it adds new crypto ETFs to the U.S. market, but because it validates a regulated multi-asset structure built around spot holdings. Spot-based ETFs typically appeal to investors who want price exposure to the underlying assets without directly buying, storing, or securing tokens themselves. For financial advisors, institutions, and mainstream market participants, that structure can be easier to evaluate and integrate into existing portfolios than direct crypto ownership.
These products differ from futures-based crypto ETFs, which gain exposure through derivatives contracts rather than direct reserves of the underlying assets. In the case of the newly approved funds, the ETFs will track the spot prices of bitcoin and ethereum that are held in reserve. That more straightforward design may make them easier for traditional investors to understand and potentially more attractive to those looking for cleaner access to crypto market performance.
Potential Demand From Advisors and Diversified Portfolios
Industry observers quickly noted the broader implications of the approvals. Nate Geraci, co-founder of The ETF Institute, said it would be interesting to see whether firms such as Blackrock or others attempt to follow the same path and launch similar products. He added that he expects meaningful demand for these ETFs, emphasizing that advisors tend to favor diversification, especially within an emerging asset class like crypto.
That view reflects a growing shift in how digital assets are being positioned for traditional investors. Rather than presenting crypto exposure as an all-or-nothing allocation to one token, multi-asset ETFs package it as a diversified thematic investment. In practical terms, that may make the products easier to recommend in advisory channels where diversification and risk framing play a central role.
Regulatory Adjustments Helped Secure Approval
The report noted that both Hashdex and Franklin Templeton revised their filings before receiving approval. Those changes were made to align the products with regulatory standards aimed at reducing fraud risks and preserving market integrity. That detail underscores a recurring pattern in U.S. crypto regulation: approvals have often come only after issuers adjust product structures, disclosures, or operational frameworks to satisfy SEC concerns.
While the article does not specify every amendment made to the paperwork, the outcome suggests that the SEC was ultimately comfortable enough with the design and compliance measures to allow the funds to move forward. For issuers and market participants, that may offer a roadmap for how future crypto index products can be structured to gain regulatory acceptance.
Expected Launch in January 2025
Both ETFs are expected to begin trading in January 2025. Their launch will be closely watched by investors, advisors, and competing asset managers alike. The market will likely focus on early asset gathering, trading volumes, and whether mixed bitcoin-ethereum exposure proves more compelling than single-asset alternatives.
If these products attract strong interest, they could encourage more asset managers to pursue similar hybrid or index-based crypto ETFs. In turn, that could gradually broaden the investable crypto toolkit available through traditional brokerages and retirement accounts. Even if initial flows are modest, the approvals themselves represent a structural milestone by demonstrating that the SEC is willing to permit regulated spot crypto funds that hold more than one digital asset.
A Step Toward Broader Crypto Index Investing
The approval of the Hashdex and Franklin Templeton ETFs may ultimately be remembered less for the specific 80/20 allocation and more for what it signals about the direction of the market. Crypto investing in the U.S. has steadily moved from fringe access points toward products that resemble familiar instruments from traditional finance. Index-based ETFs fit squarely within that trend.
For investors, the appeal is straightforward: one product, two major crypto assets, and no need to manage wallets or private keys. For regulators, the challenge remains ensuring that these products operate within safeguards designed to protect markets and investors. For issuers, the approvals suggest that carefully structured multi-asset crypto funds can win a place in the regulated financial system.
As the products prepare for their market debut, attention will now shift from the regulatory milestone to real-world adoption. Whether these ETFs become major allocation vehicles or simply a niche option, their approval marks another meaningful step in the evolution of crypto as a recognized part of mainstream investment infrastructure.