- The SEC has approved Hashdex’s crypto index ETF proposal.
- The ETF currently contains Bitcoin and Ethereum, with possible additions in the future.
- The agency also approved Franklin Templeton’s amendment to its Cboe BZX Crypto Index ETF.
On Thursday, the US Securities and Exchange Commission (SEC) approved the application for a crypto index exchange-traded fund (ETF) by asset managers Hashdex and Franklin Templeton.
SEC gives green light to Hashdex Nasdaq and Franklin Templeton Cboe crypto index ETFs
The SEC has approved a combined spot Bitcoin and Ethereum exchange-traded fund (ETF) from asset managers Hashdex and Franklin Templeton, according to a filing on Thursday.
The endorsements cover the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. The agency said that Nasdaq and Cboe BZX proposed changes to the rules for listing and trading in product shares.
The products will contain both Bitcoin and Ethereum with an average weight of 80/20, but will allow room for future additions.
Nasdaq filed an amended proposal for the Hashdex crypto index ETF in September after the original filing in May.
Franklin Templeton, on the other hand, has been dealing with this ETF since filing its original proposal in September.
The updated filing, filed earlier Thursday by Cboe BZX, received expedited approval for adhering to existing commodity-based trust unit standards.
According to Bloomberg analyst Eric Balchunas, the products would likely go live in January.
The SEC approval shows an easing of tensions between regulators and the crypto community ahead of Donald Trump’s inauguration in January.
In addition, the approval confirms Balchunas’ speculation on Tuesday about a new wave of ETFs. Balchunas predicted that the combination of Bitcoin and Ethereum ETFs will happen first, followed by the approval of Litecoin (LTC) and HBAR ETFs.
Crypto ETF FAQs
An exchange-traded fund (ETF) is an investment vehicle or index that tracks the price of an underlying asset. ETFs can track not just one asset, but also a group of assets and sectors. For example, a Bitcoin ETF tracks the price of Bitcoin. An ETF is a tool used by investors to increase exposure to a particular asset.
That. The first Bitcoin futures ETF in the US was approved by the US Securities and Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, and more than 20 are still awaiting regulatory approval. The SEC says the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-linked futures ETFs for the past few years.
That. In January 2024, the SEC approved the listing and trading of several exchange-traded Bitcoin spot funds, opening the door for institutional capital and mainstream investors to trade the major cryptocurrency. The industry hailed the decision as a rule change.
The main advantage of crypto ETFs is the ability to gain exposure to cryptocurrency without ownership, reducing the risk and cost of holding assets. Other advantages are a lower learning curve and greater security for investors since ETFs take responsibility for securing the underlying assets. As for the main disadvantages, the main one is that as an investor you cannot have direct ownership of the asset, or as they say in cryptocurrency, “neither your keys nor your coins.” Other disadvantages are the higher costs associated with holding cryptocurrency as ETFs charge active management fees. Finally, although investing in ETFs reduces the risk of holding assets, changes in the price of the underlying cryptocurrency are likely to be reflected in the investment vehicle as well.
