The U.S. Securities and Exchange Commission (SEC) has approved two cryptocurrency index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton, marking the first time regulators have allowed hybrid spot ETFs holding both Bitcoin (BTC) and Ethereum (ETH). This milestone opens a new chapter for regulated crypto investments.
Product Details and Listings
Hashdex's Nasdaq Crypto Index US ETF will trade on the Nasdaq stock exchange, tracking the Nasdaq Crypto US Settlement Price Index. Franklin Templeton's Crypto Index ETF will debut on the Cboe BZX Exchange, following the Institutional Digital Asset Index. Both funds are composed of approximately 80% Bitcoin and 20% Ethereum, with the potential to include additional crypto assets in the future.
Industry Reactions
Nate Geraci, co-founder of The ETF Institute, commented after the approval: "Will be interesting to see if BlackRock or others attempt to piggyback on this and launch similar ETFs. Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto." The straightforward structure removes the complexity of futures-based products, allowing investors to gain exposure without the hassle of directly holding digital coins.
Mechanism and Compliance
These ETFs directly follow the spot prices of Bitcoin and Ethereum held in reserves, differing from futures-based products. Both companies amended their filings to align with regulations designed to prevent fraud and maintain market integrity. Scheduled for launch in January 2025, the ETFs are expected to attract significant investor interest, potentially paving the way for additional hybrid crypto ETFs in the future.