SEC Approves First Combined Bitcoin And Ethereum ETFs

SEC Approves First Combined Bitcoin And Ethereum ETFs From Hashdex And Franklin Templeton

Updated: 20 December 2024

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The US Securities and Exchange Commission (SEC) has approved the first combined Bitcoin and Ethereum ETFs (exchange-traded funds) from Hashdex and Franklin Templeton.

Filings for both the Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF were accepted by the SEC. Each fund will hold the two crypto market leaders based on their respective market capitalizations, which should be an approximate 80/20 split in favor of BTC.

Combined Bitcoin And Ethereum ETFs Expected To Launch In January

Bloomberg ETF analyst Eric Balchunas predicted in a Dec.19 X post that the two funds will launch in January, which is also when US President-elect Donald Trump will enter the White House for his second term.

The spot bitcoin/ether combo ETFs have been approved by SEC (as predicted). Launch likely in January. They’re mkt cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them. https://t.co/o2ri3XpqZi

— Eric Balchunas (@EricBalchunas) December 20, 2024

The ETF Store President Nate Geraci questioned whether asset management titan BlackRock or others will “attempt to piggyback” on the recent approval of the Hashdex and Franklin crypto index ETFs. He added though that he anticipates “meaningful demand” for these crypto ETFs.

AVAX, LINK And LTC Meet Hashdex’s Eligibility Criteria

The SEC initially postponed its decision on Hashdex’s proposed ETF before yesterday’s approval. In response, the firm then submitted an S-1 filing last month. In this revised filing, the asset manager said that other cryptos including Avalanche (AVAX), Chainlink (LINK) and Litecoin (LTC) meet its eligibility criteria, based on its assessment.

The SEC also initially delayed its decision on Franklin’s crypto index ETF. Similar to Hashdex, Franklin said in its filings that its fund would also be able to add other cryptos should it receive regulatory approval. However, the asset manager did not specify which crypto assets were under consideration.

The Franklin Crypto Index ETF will trade under the ticker EZPZ, while Hashdex’s ETF will have the ticker NCIQ. BitGo and Coinbase are listed as custodians for both funds, with Hashdex also listing Fidelity and Gemini as core custodians for its ETF.