SEC Approves First Bitcoin-Ethereum Index ETFs from Franklin Templeton and Hashdex

The Securities and Exchange Commission gave Franklin Templeton and Hashdex the green light to launch their respective Bitcoin and Ethereum index ETFs in the United States.

The Securities and Exchange Commission (SEC) has approved two crypto index ETFs that will provide institutional investors with exposure to both Bitcoin and Ethereum for the first time.

The ETFs, from Franklin Templeton and Hashdex, are part of a wave of new crypto products that have been hitting the market in recent months.

The SEC’s approval of the ETFs is a major milestone for the crypto industry, and it could pave the way for even more institutional adoption of crypto in 2023.

Here's what you need to know.

The Franklin Templeton Crypto Index ETF will trade on the Cboe BZX Exchange under the ticker symbol "FBTC."

The Hashdex Nasdaq Crypto Index US ETF will trade on the Nasdaq stock market under the ticker symbol "HASH."

Both ETFs will track an index of the performance of Bitcoin and Ethereum, and they will be available to institutional investors through their brokers.

The SEC's approval of the ETFs is subject to several conditions, including that the issuers will comply with the Exchange Act's requirements for listing and trading ETPs on national securities exchanges.

The issuers must also file periodic reports with the SEC and provide investors with continuous disclosure of material information.

The approval of the ETFs is the latest in a series of steps by the SEC to increase institutional access to crypto.

In recent months, the SEC has also approved several crypto options products and cleared two spot Bitcoin ETFs for launch.

The institutional demand for crypto products has been growing rapidly, and the SEC's approval of these ETFs is likely to meet that demand.

More Crypto Index ETF Could Follow

Following the SEC approval, ETF Store President Nate Geraci told Axios that he expects other large asset managers, such as BlackRock, to roll out similar index ETFs that hold both Bitcoin and Ethereum.

According to Geraci, the product is likely to be in high demand, which could prompt other top managers to launch similar products.

Currently, two more prospective issuers are awaiting the SEC's green light to launch crypto index ETFs in the U.S.

Last month, Bitwise applied to convert the Bitwise 10 Crypto Fund (BITW), which holds a basket of cryptos like XRP and Bitcoin, into an ETP.

The application follows Grayscale's similar request to convert its Digital Large Cap Fund (GDLC), which spans five cryptos, into an index ETF. If approved, both funds will trade on NYSE Arca.

As earlier reported, the SEC both applications, but it has yet to decide whether to approve any of the filings.