The U.S. Securities and Exchange Commission (SEC) has approved the first crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton.
The U.S. Securities and Exchange Commission (SEC) has approved the first crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton.
These funds will initially hold spot Bitcoin and Ether based on their market capitalizations, with an approximate weight of 80% Bitcoin and 20% Ether. Both ETFs are expected to launch in January.
The Hashdex Nasdaq Crypto Index U.S. ETF will trade under the ticker NCIQ, while Franklin Templeton’s fund will use the ticker EZPZ. Each fund will have BitGo and Coinbase as core custodians. The SEC's approval follows initial delays and was granted based on the funds' substantial similarities to previously approved spot Bitcoin and Ether ETFs.
Hashdex initially filed its registration statement with the SEC in July, while Franklin Templeton submitted its filing in August. The SEC's rationale for approval highlighted these funds’ compliance with criteria already established for other crypto ETFs.
Eric Balchunas, a Bloomberg ETF analyst, noted the anticipated launch of these combo ETFs may attract investor interest due to the inherent diversification they offer.
The approval marks a significant development in the U.S. crypto ETF market, which has seen substantial growth over the past year. Following the January approval of 11 spot Bitcoin ETFs, the market has attracted over $36 billion in net inflows.
In contrast, the market for spot Ethereum ETFs has been less robust, generating approximately $2.4 billion in net inflows since their debut in July.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
