The SEC just gave the thumbs-up to the first-ever ETFs that invest in both Bitcoin and Ethereum! This is a pretty big deal for the crypto world. Franklin Templeton and Hashdex are behind these new funds, and they’re set to launch in January 2025.
A Hybrid Approach
For the first time, US regulators have approved ETFs that hold both Bitcoin and Ethereum. Hashdex’s ETF will be on Nasdaq, while Franklin Templeton’s will be on the Cboe BZX Exchange. They’ll start with an 80/20 split favoring Bitcoin, based on current market values, but could add other cryptos later if the SEC approves.
Why Now? What’s the Big Deal?
Nate Geraci, president of The ETF Store, thinks this approval might trigger a wave of similar ETFs from other big players like BlackRock. He also expects strong demand because advisors love diversification, especially in a new asset class like crypto. The SEC’s decision likely stems from the fact that these new ETFs are structurally similar to the recently approved Bitcoin and Ethereum-only ETFs. They met all the necessary safeguards against fraud and investor risk.
The Fine Print: Custodians and Future Crypto Additions
Both Hashdex and Franklin Templeton filed paperwork with the SEC months ago. Hashdex’s filing mentioned potentially adding cryptos like Avalanche, Chainlink, and Litecoin in the future, while Franklin Templeton left the door open for additions without specifying which ones.
Security is key: Hashdex will use Coinbase, BitGo, Fidelity, and Gemini as custodians, while Franklin Templeton will rely on BitGo and Coinbase.
The Future of Crypto ETFs
The crypto ETF market is heating up! Experts predict US crypto ETFs might even surpass gold ETFs in assets under management soon. Other countries are also starting to embrace regulated crypto ETFs.
Note: At the time of writing, Bitcoin was trading at around $95,824, down slightly./p>
