The United States Securities and Exchange Commission (SEC) has approved Bitcoin and Ethereum hybrid ETFs from Hashdex and Franklin Templeton. The move expands institutional access to the two largest Cryptocurrencies through investment vehicles based on spot prices.
Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton Crypto Index ETF have received approval from regulators, with the ETF from Franklin Templeton benefiting from a faster review process.
ETF Combining Bitcoin and Ethereum Approved After Successive Delays
Franklin Templeton’s updated ETF application, filed earlier today, was quickly approved thanks to its compliance with established standards for commodity-based trusts.
According to filethe SEC approved proposed rule changes introduced by Nasdaq and Cboe BZX to facilitate the listing and trading of these funds.
“Hashdex Crypto Index ETF just passed SEC approval. Initially, it will only include BTC and ETH, but will expand to other assets over time… INCLUDING XRP!” says renowned artist Chad Steingraber.
Hashdex filed for its ETF in June, but the SEC delayed the decision twice, citing regulatory considerations. Analysts say upcoming leadership changes in Washington may have prompted the recent approvals.
“Launch maybe January. They are based on cap, so about 80/20 btc/eth. Notably Hashdex & Frankie were the first. Good for them,” said the ETF analyst Eric Balchunas wrote.
Meanwhile, the approval for these ETFs coincides with a period of volatility in the Cryptocurrency market. According to TinTucBitcoin, more than 1 billion USD has been liquidated within the past 24 hours.
Bitcoin price dropped more than 8% today, falling from $105K USD to below $96K USD.
Will There Be The Next Litecoin ETF?
Earlier this week, Bloomberg analysts predicted the licensing of dual Bitcoin and Ethereum ETFs, which immediately became a reality. According to their forecast, the SEC will approve the next Litecoin ETF.
While there may not be significant demand for LTC on the part of institutional investors, Litecoin is a version of Bitcoin and can be considered a commodity under US regulations.
However, uncertainties still exist for other popular assets such as Solana and XRP ETFs. With Paul Atkins taking over, the SEC will likely take a more positive stance towards Crypto ETFs. Recent developments within the SEC hint that a change is underway.
Yesterday, the Senate Banking Committee rejected the re-nomination of Commissioner Caroline Crenshaw. She has been a strong supporter of SEC Chairman Gary Gensler’s anti-Crypto agenda. Crenshaw’s term will end in January, leaving a vacancy on the agency’s board.