SEC approves Hashdex and Franklin Templeton dual Bitcoin-Ethereum ETF
SEC approves Hashdex and Franklin Templeton dual Bitcoin-Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has approved dual Bitcoin and Ethereum exchange-traded funds (ETFs) from Hashdex and Franklin Templeton, marking another milestone in the integration of cryptocurrencies into mainstream financial markets.
These ETFs, backed by the Nasdaq and Franklin Templeton Crypto Indexes, are spot-based, offering institutional investors direct access to the two largest digital assets.
The approvals coincide with a turbulent period in the cryptocurrency market. Over $1 billion in liquidations were recorded in the last 24 hours, with Bitcoin’s price dropping over 8% from $105,000 to below $96,000. Ethereum also experienced a sharp decline, falling 15% to $3,440. Solana followed suit, losing 15% and trading at $196.
Despite this volatility, the SEC’s decision underscores a growing recognition of crypto’s role in institutional portfolios. Franklin Templeton’s ETF received accelerated clearance due to its adherence to commodity-based trust share standards, while Hashdex's Nasdaq Crypto Index ETF highlights the rising demand for diversified digital asset investments.
Regulatory outlook and future ETFs
Analysts predict Litecoin may become the next candidate for ETF approval due to its classification as a Bitcoin fork and potential commodity status. However, regulatory uncertainties continue to cloud the prospects for Solana and XRP ETFs. A potential leadership change at the SEC in 2025 under Paul Atkins could further enhance the regulatory environment for crypto ETFs.
The SEC’s approval of these ETFs signals a significant step toward broader acceptance of cryptocurrencies in traditional finance. As institutional interest grows, the availability of spot-based ETFs for major cryptocurrencies like Bitcoin and Ethereum is likely to foster increased participation, potentially stabilizing and maturing the market in the long term.
Read also: Hawk Tuah girl sued as HAWK token collapse
