The United States Securities and Exchange Commission (SEC) has approved Bitcoin and Ether index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton, marking a significant development in the cryptocurrency investment landscape. On December 19, the SEC confirmed the approval of Hashdex’s NASDAQ Crypto Index US ETF, which will be listed on the NASDAQ exchange. Concurrently, the Franklin Crypto Index ETF received authorization to trade on the Cboe BZX Exchange.
These ETFs will primarily invest in spot Bitcoin (BTC) and spot Ether (ETH). The Franklin Crypto Index ETF will follow the Institutional Digital Asset Index, which aims to reflect the performance of digital assets including Bitcoin and Ether. Meanwhile, Hashdex’s Crypto Index ETF aims to mirror the NASDAQ Crypto US Settlement Price Index for these two cryptocurrencies. The SEC expedited the approval for Franklin Templeton’s updated filing, which was submitted shortly before the decision.
The approvals highlight how the updated applications from both firms closely align with previously sanctioned proposals for spot Bitcoin and Ether exchange-traded products. The SEC emphasized that these proposals adhered to the criteria set forth in the Exchange Act, ensuring robust protections against fraudulent activities and prioritizing investor interests.
Market analysts believe this approval could pave the way for more financial firms to enter the cryptocurrency ETF arena. The anticipated demand for these products is rooted in the desire for diversification, particularly within the burgeoning crypto sector. In August, Franklin Templeton had initially filed for the crypto index ETF, but the SEC postponed the decision until November 20. Similarly, Hashdex submitted a revised application shortly after.
Other firms are also exploring similar opportunities to launch crypto index ETFs in the U.S. In late November, NYSE Arca made efforts to list a Bitwise ETF that would incorporate both Bitcoin and Ether. Additionally, the exchange has shown interest in a Grayscale crypto index ETF aimed at providing a broader array of cryptocurrency exposure, with regulatory discussions underway regarding potential listings.