U.S. SEC Greenlights Spot Bitcoin-Ethereum ETF Products From Hashdex and Franklin Templeton

According to a December 19 announcement by the SEC, Hashdex and Franklin Templeton can now list their spot BTC-ETH exchange-traded fund products

The broader crypto market saw a sharp decline on December 20, with the total market cap decreasing by 7%. This comes following the approval of a Bitcoin-Ethereum ETF combo by the United States SEC.

Bitcoin recorded a 6.85% decline over the last 24 hours, dropping below $400k for the first time in two weeks to trade at $94,968. Despite the decrease, trading activity increased by 27% within the same time to reach $122 billion, with a live market cap of $1.88 trillion.

Meanwhile, Ethereum crashed by over 10% in one day to change hands at $3,286. The general market sentiment still reflects bullish, with investors maintaining optimism as the year ends.

U.S. SEC Greenlights Bitcoin-Ethereum ETF

The Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF are set to be listed on the Nasdaq stock market and Cboe BZX Exchange, respectively.

According to a December 19 announcement by the SEC, Hashdex and Franklin Templeton can now launch their spot BTC-ETH exchange-traded fund products. Eric Balchunas, a senior ETF analyst at Bloomberg, noted that the ETFs will likely debut in January 2025. The ETFs will be updated by tracking the spot prices of Bitcoin (BTC) and Ethereum (ETH).

Since they are the first to introduce the product in the market, Hashdex and Frankie get the first-mover advantage. The ETFs share similarities with other BTC and ETH ETFs that were approved earlier this year.

According to the SEC, the proposals fulfilled the Exchange Act criteria which involve submitting disclosure documents that are updated regularly, and the requirement to have enough robust rules to prevent fraudulent and manipulative activities.

Other Top Issuers to Follow?

According to Nate Geraci, the president of the ETF Store and co-founder of ETF Institute, there is a possibility of other top ETF issuers following the same step as Hashdex and Frank Templeton.

"Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs…,” he said. Geraci also pointed out that these products are expected to see increasing demand in the future.

Meanwhile, the crypto ETF market saw a substantial outflow over the last day. According to Soso Value data, BTC ETF saw a daily net outflow of $680 million as of December 19, with Fidelity FBTC recording the most outflow of $208 million.

Spot Ethereum ETF bled out $60.47 million with Grayscale NYSE having the largest outflow of $58.13 million.