bitcoin
bitcoin

$98323.705641 USD

3.44%

ethereum
ethereum

$3479.656301 USD

1.29%

tether
tether

$0.999198 USD

0.06%

xrp
xrp

$2.278439 USD

-0.43%

bnb
bnb

$707.648541 USD

2.76%

solana
solana

$196.458998 USD

1.02%

dogecoin
dogecoin

$0.330801 USD

1.28%

usd-coin
usd-coin

$1.000023 USD

0.01%

cardano
cardano

$0.913068 USD

-0.32%

tron
tron

$0.256682 USD

0.87%

avalanche
avalanche

$40.674752 USD

2.23%

chainlink
chainlink

$24.526639 USD

0.40%

toncoin
toncoin

$6.000743 USD

4.97%

shiba-inu
shiba-inu

$0.000023 USD

1.08%

sui
sui

$4.484199 USD

-2.60%

Cryptocurrency News Articles

The U.S. Securities and Exchange Commission has finally approved the first spot bitcoin and Ethereum combination exchange-traded funds

Dec 25, 2024 at 05:04 am

This giant step is the most remarkable milestone in the mainstream adaptation of digital assets and traditional financial markets.

The U.S. Securities and Exchange Commission has finally approved the first spot bitcoin and Ethereum combination exchange-traded funds

The U.S. Securities and Exchange Commission (SEC) has finally approved the first spot bitcoin and Ethereum combination exchange-traded funds (ETFs) from Hashdex and Franklin Templeton, in a highly anticipated move that marks a major step for both the investment and cryptocurrency industries.

This giant step also heralds the most remarkable milestone yet in the mainstream adaptation of digital assets and traditional financial markets, as part of a broader convergence between the two domains.

The Approval Details

While many voices have been raised in the long-standing debate advocating for having regulated investment vehicles on cryptocurrency exposure, the SEC has been sitting on many applications for approval. However, this latest approval will give investors direct exposure to bitcoin and Ethereum, the two largest market capitalization cryptocurrencies, without having to buy or hold the underlying assets directly.

“To help investors achieve a more balanced exposure to both cryptocurrencies (while dynamically adjusting allocations depending on market conditions), Hashdex has introduced the ‘Bitcoin-Ethereum Strategy ETF',” the firm said in a statement. Meanwhile, Franklin Templeton's “Digital Core ETF will also incorporate an appropriate mix of bitcoin and Ethereum and drive that mix toward growth over time through further diversification and reduced volatility.”

Market Impact

The approval has wide-ranging repercussions, stretching far and wide into the cryptocurrency market. Spot bitcoin ETF approvals have historically signaled great regulatory green lights, and such approvals often end up increasing investor confidence and institutional wealth inflow. While these ETFs offer an option that diversifies into two, they also appeal to more than a narrower set of investors by bringing Ethereum into the mix.

The Response of the Industry

The cryptocurrency industry has generally celebrated the SEC's decision as a watershed moment in the relationship between digital and traditional finance. “We are happy to bring this innovative product to market, offering investors a regulated and efficient way to exposure to the two leading virtual currencies,” said Hashdex's CEO, Paulo Passoni.

On the other hand, Franklin Templeton also had something to say about the approval. “Our Digital Core ETF reflects our commitment to providing investors with cutting-edge solutions that meet their evolving needs,” said Sarah Bennett, Franklin Templeton's head of ETF product strategy.

Wider Implications

The approval of these ETFs is also likely to extend beyond the cryptocurrency sector into other areas of financial markets. The move, analysts speculate, may open the door for more traditional asset managers to look into blockchain technology and digital assets, speeding up the convergence of conventional finance with decentralized finance (DeFi).

The action by the SEC also very much indicates an open opportunity for innovation in the financial sector while guarding investors. However, it implicates further questions concerning other pending approvals for cryptocurrency ETFs, which include those considering the DeFi tokens or other blockchain-based assets.

What Happens Next?

Now, as the dates close in for ETF launches later in the year, market participants turn their gaze toward how these products will perform and shape the broader investment landscape. The combination of bitcoin and Ethereum in one fund provides a new way to diversify risk, paving the way for even more complex products for crypto investment in the future.

News source:techstory.in

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Dec 25, 2024