SEC expands institutional access to Bitcoin and Ethereum by approving two crypto index ETFs holding both assets.
The Securities and Exchange Commission gave Franklin Templeton and Hashdex the green light to launch their respective Bitcoin and Ethereum index ETFs in the United States.
While the Franklin Templeton Crypto Index ETF will trade on the Cboe BZX Exchange, investors can buy and sell Hashdex’s Nasdaq Crypto Index US ETF shares on the Nasdaq stock market.
Previous Attempts to List Dual Bitcoin-Ethereum ETFs
For context, Franklin Templeton first submitted its S-1 application for the dual Bitcoin and Ethereum index ETF in August. Similarly, Hashdex filed its S-1 application in October, with an amended filing made on November 25.
As the SEC delayed its decision on Franklin’s application, which was initially scheduled for November 20, it also requested more time to decide whether to approve Hashdex’s Bitcoin-Ethereum index ETF.
The securities agency finally approved yesterday the Bitcoin-Ethereum index ETFs from both issuers. According to the SEC notice, the approval is based on the issuers’ compliance with the Exchange Act’s requirements, which focus on protecting investors from fraud and market manipulation.
More Crypto Index ETF Could Follow
Following the SEC’s approval, Nate Geracci, the President of ETF Store, speculated that other asset managers like BlackRock might also roll out similar index ETFs holding Bitcoin and Ethereum.
He noted that the product might witness significant demand, prompting other top managers to launch similar ones.
Two prospective issuers are currently seeking the SEC’s approval to launch crypto index ETFs in the U.S. Last month, Bitwise requested to convert the Bitwise 10 Crypto Fund (BITW), which contains a basket of cryptos like XRP and Bitcoin, into an ETP.
The application follows Grayscale’s similar request to convert its Digital Large Cap Fund (GDLC), which holds five cryptos, into an index ETF. If approved, both funds will trade on NYSE Arca.
As reported earlier, the SEC acknowledged both applications. However, it has yet to decide whether to approve any of the fillings.
Meanwhile, the SEC’s approval comes as the market experiences significant volatility, leading to over $1 billion liquidation in one day. Amid the intense turbulence, the price of Bitcoin plunged from its peak of $108,268, registered three days ago, to around $96,000.
Similarly, Ethereum plummeted by 18.16% within 72 hours, slumping from $4,106 to $3,360.
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