The U.S. Securities and Exchange Commission has given the go-ahead to two spot cryptocurrency index exchange-traded funds. On Dec. 18, Franklin Templeton’s crypto index ETF proposal was approved to trade on the Cboe BZX Exchange. The next day, Hashdex’s crypto index ETF, set to trade on the Nasdaq, also got the green light.
Franklin Templeton received “accelerated approval” as its updated filing met requirements and was like previously approved spot Bitcoin and Ether ETPs. Crypto index ETFs track multiple cryptos, providing diversification. Hashdex’s will track the Nasdaq Crypto US Settlement Price Index, and Franklin Templeton’s the Institutional Digital Asset Index, mainly focusing on spot Bitcoin and Ether.
Franklin Templeton filed in August, and Hashdex in June with an amended application on Nov. 25. The SEC took time to assess, and the issuers addressed concerns. Bloomberg’s Eric Balchunas says the funds may launch in January with Bitcoin at about 80% and Ether 20% of holdings.
With the first crypto index funds approved, experts like Nate Geraci expect more issuers to follow due to advisor demand for diversification. Last month, Bitwise filed to launch a spot Bitcoin and Ether ETP on the NYSE Arca. These events occur with SEC leadership changes as Gary Gensler resigns on Jan. 20, 2025, when President-elect Donald Trump takes office.
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