SEC Approves Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton

The U.S. Securities and Exchange Commission (SEC) approved dual Bitcoin and Ethereum exchange-traded funds (ETFs), offered by Hashdex and Franklin Templeton. These ETFs are spot-based investment vehicles designed to provide institutional access to the two largest digital assets.

The SEC approved rule changes proposed by Nasdaq and Cboe BZX, allowing the listing and trading of these ETFs. The commission emphasized that the funds meet Exchange Act criteria, requiring measures to prevent fraud and protect investors.

The Approved ETFs: What They Offer

The approvals cover two funds:

• Hashdex Nasdaq Crypto Index US ETF
• Franklin Templeton Crypto Index ETF

Franklin Templeton’s ETF tracks the Institutional Digital Asset Index, which reflects the performance of Bitcoin and Ethereum. Hashdex’s ETF is tied to the Nasdaq Crypto US Settlement Price Index, also focused on Bitcoin and Ethereum. Both funds prioritize transparency, regulatory compliance, and investor protection.

Initially, the Hashdex Crypto Index ETF will include only Bitcoin and Ethereum but aims to expand to other digital assets, potentially including XRP.

Hashdex filed for its ETF in June, facing delays as the SEC postponed decisions for further regulatory review. However, recent leadership changes in Washington may have accelerated the green light for these funds. Franklin Templeton’s filing received expedited clearance due to adherence to established commodity-based trust share standards.

Approval of Bitcoin and Ethereum ETFs brings institutional credibility to the crypto market. It allows traditional investors to diversify portfolios without directly holding volatile digital assets. This change is particularly crucial for financial advisors seeking regulated, transparent options for clients interested in cryptocurrencies.

Industry Reactions

Popular ETF analyst Eric Balchunas noted that both ETFs are market cap-weighted, likely allocating around 80% to Bitcoin and 20% to Ethereum. He expects the launch to occur in January.

Nate Geraci, president of The ETF Store, speculated that other firms, including BlackRock, might follow suit. “There will be meaningful demand for these products. Advisors love diversification, especially in an emerging asset class like crypto,” he commented.

On social media, artist Chad Steingraber highlighted the potential inclusion of XRP in the Hashdex ETF, sparking interest among crypto enthusiasts.