The SEC has approved the launch of crypto index ETFs from Hashdex and Franklin Templeton, offering exposure to Bitcoin and Ethereum.
On Thursday, the US Securities and Exchange Commission (SEC) approved crypto index ETFs from Hashdex and Franklin Templeton offering exposure to the top two crypto assets: Bitcoin BTC $95 293 24h volatility: 6.3% Market cap: $1.89 T Vol. 24h: $107.10 B and Ethereum ETH $3 288 24h volatility: 10.4% Market cap: $397.06 B Vol. 24h: $65.56 B . The approvals include the Franklin Templeton Crypto Index ETF and the Hashdex Nasdaq Crypto Index US ETF.
In its announcement, the securities regulator stated that Nasdaq and Cboe BZX proposed rule changes while trading shares of the products. Hashdex and Franklin Templeton have been pursuing the approval of this crypto ETF since May 2024.
Bloomberg’s senior ETF analyst, Eric Balchunas, also confirmed the development. He added that these ETFs, which are market cap-weighted with an approximate 80/20 split between Bitcoin and Ether, will launch in January. Balchunas also noted that Hashdex and Franklin Templeton are the first to introduce these products, marking a significant milestone in the cryptocurrency investment space.
Explaining the rationale behind this approval, the US SEC noted that the representations in their revised filings are largely consistent with those of the spot Bitcoin ETP and spot Ether ETP proposals approved in previous Commission orders. Speaking on this development, ETF Store President Nate Geraci stated:
“Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs… Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto”.
After nearly a fortnight of continuous inflows, the spot Bitcoin ETFs and the spot Ethereum ETFs in the United States saw net outflows on Thursday. Yesterday, the total outflows from the US Bitcoin ETFs stood at a staggering $671 million, with Fidelity’s FBTC recording the most outflows at $208 million. Grayscale’s mini-Bitcoin ETF (BTC) followed with $188 million in outflows, while Ark Invest’s ARKB saw $108 million in outflows. On the other hand, BlackRock’s IBIT saw no net inflows or outflows.
Similarly, the US Ethereum ETFs saw net outflows of $60 million yesterday. Grayscale’s ETHE saw the most outflows with $58 million while BlackRock’s ETH saw net zero flows.
The Bitcoin price has come crashing down to $95,000 amid the broader market selloff as total market liquidations soared to $1 billion. BTC has already corrected over 10% from its all-time high of $108K with some market analysts even predicting a drop to $90,000.
On the other hand, Ethereum (ETH) price corrected over 9% slipping all the way to $3,350. It has corrected more than 15% after facing rejection at $4,000 earlier this week. The ETH price crash has dragged the overall altcoin space downward.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
