SEC approves first Bitcoin and Ethereum ETFs

The US Securities and Exchange Commission (SEC) has approved the first cryptocurrency index trading funds (ETFs) from Hashdex and Franklin Templeton.

These funds will initially hold spot Bitcoin and Ethereum based on their market capitalization, with an approximate weighting of 80% Bitcoin and 20% Ether. Both ETFs are expected to launch in January.

The Hashdex Nasdaq Crypto Index US ETF will trade under the NCIQ ticker, while the Franklin Templeton fund will use the EZPZ ticker. Each fund will have BitGo and Coinbase as primary custodians. The SEC approval follows initial delays and was granted based on significant similarities between the funds and previously approved Bitcoin and Ether ETFs.

Hashdex initially filed its registration statement with the SEC in July, while Franklin Templeton filed its filing in August. The rationale for the SEC’s approval highlighted these funds’ compliance with standards already established for other crypto ETFs.

Eric Balchunas, Bloomberg ETF Analyst, male The expected launch of these ETFs may attract investor interest due to the inherent diversification they provide.

The approval represents an important development in the US cryptocurrency ETF market, which has seen significant growth over the past year. Following the approval in January of 11 Bitcoin ETFs, the market attracted over $36 billion in net inflows.

In contrast, the Ethereum ETF market has been less robust, generating roughly $2.4 billion in net inflows since its debut in July.