The SEC has approved Hashdex's proposal for a cryptocurrency index ETF. This ETF currently includes Bitcoin and Ethereum, and may add more in the future. The agency also approved Franklin Templeton's amendment to the CBOE BZX cryptocurrency index ETF.
The U.S. Securities and Exchange Commission (SEC) on Thursday approved an application by asset management firms Hasidex and Franklin Templeton for a cryptocurrency index exchange-traded fund (ETF).
SEC gives green light to HashDex Nasdaq and Franklin Templeton CBOE Crypto Index ETF
The SEC has approved a spot-based combined Bitcoin and Ethereum exchange-traded fund (ETF) from asset managers Hashdex and Franklin Templeton, according to a Thursday filing.
The approval covers the Hashdex Nasdaq Crypto Index U.S. ETF and the Franklin Templeton Crypto Index ETF. The agency said it is proposing rule changes for Nasdaq and Seabo BZX to list and trade shares in the commodity.
These products include both Bitcoin and Ethereum and have an average weighting of 80/20, with room for future additions.
Nasdaq submitted a revised proposal for the HashDex Cryptocurrency Index ETF in September, after initially filing it in May.
Meanwhile, Franklin Templeton has been pursuing the ETF since it first submitted its proposal in September.
Cboe BZX's latest application, filed early Thursday, received early approval because it complies with existing product-based trust stock standards.
The product will likely launch in January, said Eric Balchunas, a Bloomberg analyst.
The SEC's approval signals easing tensions between regulators and the crypto community ahead of President Donald Trump's inauguration in January.
Additionally, the approval confirms Balciunas' speculation on Tuesday about a new wave of ETFs. Balchunas predicted that the combination of Bitcoin and Ethereum ETFs would be approved first, followed by 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 don't just track a single asset, they can also track groups of assets or sectors. For example, a Bitcoin ETF tracks the price of Bitcoin. ETFs are tools that investors use to gain exposure to specific assets.
yes. 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, with more than 20 still awaiting regulatory approval. The SEC said it has held off on issuing crypto-related futures ETFs over the past few years because the industry is new and susceptible to manipulation.
yes. The SEC approved the listing and trading of multiple Bitcoin Spot exchange-traded funds in January 2024, allowing institutional and mainstream investors to trade the leading cryptocurrency. This decision was hailed as a game changer by the industry.
The main advantage of crypto ETFs is that they have the potential to gain exposure to cryptocurrencies without ownership, reducing the risks and costs of holding assets. Other advantages include a short learning curve for investors and high safety, as ETFs are responsible for securing the underlying holdings. The main drawback is that as an investor, you do not have direct ownership of the assets, or as they often say with cryptocurrencies, “you don't own the keys or the coins.” Other disadvantages include higher costs associated with holding crypto assets, as ETFs charge fees for active management. Finally, while investing in ETFs reduces the risk of holding assets, price fluctuations in the underlying cryptocurrencies can also be reflected in the investment vehicle.
