Franklin and Hashdex's Crypto ETFs Win SEC Approval

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Franklin Templeton and Hashdex's Bitcoin-Ethereum ETFs Win SEC Approval

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 20, 2024

Key Takeaways

SEC approves crypto ETFs by Franklin Templeton and Hashdex, offering direct exposure to Bitcoin and Ethereum;
The new ETFs meet strict rules to protect investors, mirroring earlier approved crypto ETPs;
Experts predict strong demand as advisors seek diversification in the growing crypto market.

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Franklin Templeton and Hashdex's Bitcoin-Ethereum ETFs Win SEC Approval

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Franklin Templeton and Hashdex's crypto-focused exchange-traded funds (ETFs) have been approved by the United States Securities and Exchange Commission (SEC) on December 19.

According to the SEC's notice, the Franklin Crypto Index ETF will be listed on the Cboe BZX Exchange. Meanwhile, the Nasdaq Crypto Index US ETF will be traded on the Nasdaq stock market.

Both ETFs will hold spot Bitcoin BTC $90,063.76 and Ethereum ETH $3,187.47 , giving investors direct exposure to these cryptocurrencies.

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Franklin’s ETF is based on the Institutional Digital Asset Index, which tracks Bitcoin and Ethereum. On the other hand, Hashdex’s ETF uses the Nasdaq Crypto US Settlement Price Index to reflect the value of these digital assets.

The president of The ETF Store, Nate Geraci, posted on X speculating about how the market might respond to this approval. He wondered whether other companies, like BlackRock, would follow suit with similar products.

Geraci added that there could be strong demand for these ETFs. He said:

I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto.

The SEC explained that the decision was based on updated filings from both companies. These filings included detailed rules and safeguards to prevent fraud and protect investors, which met the Exchange Act's criteria.

Additionally, the SEC considered similarities to other spot Bitcoin and Ethereum exchange-traded products (ETPs) that have been previously approved.

While the SEC approves Franklin and Hashdex's Bitcoin-Ether ETFs, Grayscale Investments recently submitted a proposal to turn its GrayScale Solana Trust (GSOL) into a spot ETF. Why did the company make this decision? Read the full story.