The SEC has approved Bitcoin and Ethereum-linked ETFs from Hashdex and Franklin Templeton. This move expands institutional access to the two largest cryptocurrencies through spot-based investment vehicles.
The Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF have received regulatory approval, with Franklin Templeton's ETF benefiting from expedited review.
Bitcoin and Ethereum-Linked ETFs Approved
Franklin Templeton's updated ETF filing, submitted earlier today, was approved more quickly for adhering to established commodity trust fund standards. According to the filing, the SEC has approved rule changes proposed by Nasdaq and Cboe BZX to facilitate the listing and trading of these funds.
"The Hashdex Crypto Index ETF has just been approved by the SEC. Initially, it only included BTC and ETH, but it will expand to other assets over time... INCLUDING XRP!"
renowned artist Chad Steingraber said.
Hashdex had filed for its ETF in June, but the SEC had delayed the decision twice, citing regulatory discussions. Analysts suggest that upcoming leadership changes in Washington may have spurred the recent approvals.
"Expected to launch in January. They have a market cap weighting so around 80/20 btc/eth. Noteworthy that Hashdex & Frankie are the first movers. Good for them,"
ETF analyst Eric Balchunas wrote.
Meanwhile, the green light for these ETFs coincides with a volatile period in the cryptocurrency market. As BeInCrypto previously reported, over $1 billion in cryptocurrency has been liquidated in the past 24 hours. Bitcoin's price has dropped more than 8% today, from $105,000 to below $96,000.
A Litecoin ETF Next?
Earlier this week, Bloomberg analysts predicted the acceptance of dual Bitcoin and Ethereum ETFs, which has now become a reality. According to their forecast, the SEC will next approve Litecoin ETFs. While there may not be significant demand from institutional investors for LTC, Litecoin is a Bitcoin fork and may be considered a commodity under U.S. regulations.
However, there remains uncertainty around other popular assets like Solana and XRP ETFs. With Paul Atkins taking over, the SEC may have a more favorable view towards cryptocurrency ETFs. Recent moves at the SEC suggest a shift is underway.
Yesterday, the Senate Banking Committee rejected the renomination of Commissioner Caroline Crenshaw. She had been a staunch supporter of SEC Chair Gary Gensler's anti-crypto agenda. Crenshaw's term will end in January, leaving a vacancy in the agency's leadership.
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