The Securities and Exchange Commission has approved the first exchange-traded fund combining Bitcoin and Ethereum after several lengthy reviews that began in June of this year.
According to an agency spokesperson, the Nasdaq has been authorized to list Hashdex Nasdaq Crypto Index US ETF. The Cboe BZX Exchange is also allowed to list Franklin Crypto Index ETF. You can find out more about this by clicking here. Released Thursday
"The proportion of bitcoin and ether to be held by each Trust will be based on free-float market capitalizations," The filing is titled.
Eric Balchunas, Senior Bloomberg ETF Analyst Expectations Funds will be launched in January. They are expected to have a roughly 80/20 split between Bitcoin and Ethereum, reflecting market capitalizations.
Both exchanges will monitor compliance and can initiate delisting procedures if requirements are not met. Both exchanges will monitor compliance and can initiate delisting procedures if requirements aren't met.
Both exchanges have equity security rules that will apply to the trading in ETF shares. The fund will provide intraday indicative value every 15 seconds, during normal trading hours.
The approval comes as significant activity in existing crypto ETF markets continues, with current Bitcoin products showing BlackRock's IBIT dominating with $56 billion in assets under management (AUM), with over $4.4 billion in volume.
BlackRock's ETF is followed by Fidelity (FBTC) and Grayscale (GBTC), both of which stand closely with about $20 billion in AUM apiece.
Current The following are some of the most effective ways to increase your ROI: Coinglass’ data shows significant net outflows of funds across all major fund types on December 19. The total negative movement was approximately $671 Million.
Comfortable
The SEC stated that in August the SEC stated that longer period for review For Wednesday’s ETFs, “enough consideration time was needed to address the proposed changes to the rules and any issues raised.”"
Franklin Templeton's filing received "Accelerated approval" based on its similarity to previously approved spot crypto exchange-traded products (ETPs). The SEC also noted that it has continued to show high market correlations with CME futures.
One of the main factors that the SEC considered for this filing is on surveillance-sharing. This setup is an agreement between exchanges to share trading data and essential market information to help detect and prevent fraud and manipulation across connected markets.
The hybrid Bitcoin-Ethereum ETF has demonstrated this with "A market that is regulated and of significant size." the SEC said, explaining how this new financial product aligns with established commodity-based trust standards.
The approval hints that the SEC is comfortable with a dual-asset framework as long as it fits their standards and correlates enough with established markets. Previously, spot crypto ETFs were limited to single-asset exposure.
"Cryptocurrency is an asset class that advisors are eager to diversify, as it’s a newer one." said Nate Geraci, president of the ETF Store, discussing the approval in a thread on X. "The demand for the products is expected to be significant."
Geraci also noted that it would be "interesting" to see if other crypto ETF issuers would follow suit and launch similar products.
SEC has not responded to our request for comment immediately.
Sebastian Sinclair is the editor