Hashdex and Franklin Templeton have secured regulatory approval to introduce the inaugural exchange-traded funds that will offer exposure to both bitcoin and ether, as detailed in a Securities and Exchange Commission filing made public on Thursday.
The Hashdex Nasdaq Crypto Index US ETF is set to trade on the Nasdaq, whereas Franklin Templeton’s Crypto Index ETF will be listed on the Cboe BZX Exchange. Both ETFs will feature a combination of spot bitcoin and ether, weighted according to their market capitalizations, as detailed in the SEC filing.
Ether serves as the native cryptocurrency of the Ethereum blockchain network, which operates as a digital ledger system facilitating smart contracts and decentralized applications.
The arrival of new funds coincides with a pivotal moment in cryptocurrency investing, as bitcoin approaches record highs and Wall Street expands its regulated crypto investment products offerings.
The introduction of these combination ETFs represents a significant development in the realm of cryptocurrency investment. This follows the SEC’s green light for spot bitcoin ETFs in January, which have attracted more than $36 billion in assets, along with the approvals for Ethereum in July.
The regulatory filing indicates that the ETFs will comprise bitcoin and other assets, with allocations determined by the cryptocurrency’s free-float market capitalization. Both funds are set to deliver intraday pricing updates at 15-second intervals throughout regular trading hours.
Nate Geraci, president of The ETF Store, anticipates significant demand for the newly combined products.
“Advisors are enthusiastic about diversification.” In a recent post on X, Geraci highlighted the significance of the emerging asset class known as crypto.
According to the filing, the SEC acted swiftly on Franklin’s application, providing accelerated approval following the firm’s amendment on December 18, which brought its structure in line with current cryptocurrency ETF frameworks.
The SEC has concluded that both proposals comply with the Exchange Act requirements, including regulations to prevent fraudulent activities, safeguard investors, and maintain fair and orderly markets.
On Friday afternoon, bitcoin was trading at approximately $97,243, reflecting a decline of more than 10% from its recent peak of $108,268, which was achieved earlier in the week, as reported by CoinMarketCap. Ether has experienced a decline of nearly 3% today, with its trading price hovering around $3,428.