SEC approves first spot Bitcoin and Ethereum combo ETF
The U.S. Securities and Exchange Commission (SEC) has approved the first crypto index exchange traded fund (ETF) from HashDex and Franklin Templeton.
These funds will initially hold spots in Bitcoin and Ether based on market capitalization, with approximate weights of 80% Bitcoin and 20% Ether. Both ETFs are scheduled to be launched in January.
The Hashdex Nasdaq Crypto Index US ETF trades under the ticker NCIQ and the Franklin Templeton fund uses the ticker EZPZ. BitGo and Coinbase will serve as core custodians for each fund. SEC approval, after initial delays, was granted based on the fund's substantial similarity to previously approved Spot Bitcoin and Ether ETFs.
Hashdex first filed a registration statement with the SEC in July, and Franklin Templeton filed its filing in August. The SEC's rationale for approval emphasized that these funds adhere to standards already established for other crypto ETFs.
Bloomberg ETF analyst Eric Balchunas noted that the expected launch of these combo ETFs could garner investor interest because of the inherent diversification they offer.
This approval marks a significant development in the U.S. crypto ETF market, which has seen significant growth over the past year. Since the approval of 11 spot Bitcoin ETFs in January, the market has seen over $36 billion in net inflows.
In contrast, the Spot Ethereum ETF market has been less robust, generating about $2.4 billion in net inflows since its debut in July.
