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bitcoin

SEC Greenlights First Hybrid Bitcoin And Ethereum ETFs From Franklin Templeton, Hashdex

Ash Tiwari
by Ash Tiwari
10 months ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Amid yesterday’s crypto market slump, the US Securities and Exchange Commission (SEC) approved the first-ever dual Bitcoin (BTC) and Ethereum (ETH) index exchange-traded funds (ETFs) from Franklin Templeton and Hashdex. The ETFs are scheduled for launch in January 2025.

SEC Approves First Dual Bitcoin-Ethereum Index ETFs

For the first time, the US financial regulator has approved hybrid Bitcoin-Ethereum index ETFs. Hashdex’s Crypto Index ETF will trade on Nasdaq, while Franklin Templeton’s Crypto Index ETF will be listed on the Cboe BZX Exchange.

Related Reading: Taiwanese Financial Watchdog OKs Foreign Crypto ETFs For Pro Investors

Both ETFs will hold spot BTC and ETH in proportions reflecting their respective market capitalizations, currently resulting in an 80:20 ratio favoring Bitcoin. However, the ETFs may expand to include other cryptocurrencies in the future, pending regulatory approval.

The SEC highlighted that Franklin Templeton’s December 18 filing received expedited approval. Commenting on the development, Nate Geraci, President of The ETF Store, said:

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.

Geraci emphasized the potential rationale behind the SEC’s decision to approve the crypto index ETFs, pointing to their similarities with the previously approved spot Bitcoin and spot Ethereum ETFs in terms of the trusts’ structure and the operation terms.

The SEC added that proposals for both the ETFs aligned with the criteria set forth by the Exchange Act. For the uninitiated, the Exchange Act requires issuers to implement safeguards against fraud, manipulation, and risks to investors.

Details About The Crypto Index ETFs

Asset manager Hashdex first amended its S-1 filing with the SEC in October, and submitted a second amended application on November 25. Franklin Templeton filed its S-1 for the crypto index ETF in August.

Related Reading: Consistent Bitcoin ETF Inflows May Counteract Slowdown In Spot BTC Buying: Bitfinex Report

In Hashdex’s November filing, the company stated that other digital assets, such as Avalanche (AVAX), Chainlink (LINK), and Litecoin (LTC), may meet its eligibility criteria and could be added to the ETF in the future with regulatory approval. Franklin Templeton’s ETF also leaves room to add other cryptocurrencies, but did not specify any by name.

Notably, Hashdex’s ETF will rely on custodial services from Coinbase, BitGo, Fidelity, and Gemini. Similarly, Franklin Templeton’s ETF will use BitGo and Coinbase as its primary custodians.

The crypto ETF space is becoming increasingly competitive, thanks to their resounding success since their launch earlier this year. Experts opine that US-based crypto spot ETFs may soon overtake spot gold ETFs in terms of net assets held.

BTC ETF AUM
Total assets under management under Bitcoin ETFs has surged past $115 billion | Source: Coinglass

Following the US, other countries in the world are also steadily warming up to the idea of regulated crypto ETFs. At press time, BTC trades at $95,824, down 4.8% in the past 24 hours.

bitcoin
BTC trades at $95,824 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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