After six months of review, the U.S. Securities and Exchange Commission (SEC) has recently approved the first batch of Bitcoin and Ethereum mixed ETFs, including the Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF. Analysts expect a high market demand for such products in the future.
Nate Geraci, the President of ETF Store, announced on social media platform X yesterday (20th) that after nearly six months of review, the U.S. Securities and Exchange Commission (SEC) has finally approved the Bitcoin and Ethereum mixed ETFs of Hashdex (Hashdex Nasdaq Crypto Index US ETF) and Franklin Templeton (Franklin Crypto Index ETF).
According to Decrypt, the Hashdex Nasdaq Crypto Index US ETF will be listed on Nasdaq, while the Franklin Crypto Index ETF will be listed on the Cboe BZX exchange. At the same time, the proportion of Bitcoin and Ethereum held by these two mixed ETF products will be calculated based on their free float market value. In addition, the SEC has stipulated that these two products must continuously meet listing requirements and maintain transparency in their portfolio and pricing, otherwise they will be required to delist.
Furthermore, senior ETF analyst at Bloomberg predicts that these two products are expected to officially start trading in January next year. In terms of the allocation in the mixed investment, Bitcoin accounts for 80% and Ethereum accounts for 20%, reflecting their current market values.
Nate Geraci, the President of ETF Store, also added that he expects a high demand for such products in the future because investors like diversified portfolios. Additionally, after the launch of these two products, it will be interesting to see if asset management giants like BlackRock will also introduce similar products, as the SEC has shown satisfaction with the current application documents:
It will be interesting to see if BlackRock or other companies will try to launch similar products. In any case, I expect these products to have a huge market demand. Advisors like diversification, especially in emerging asset classes such as cryptocurrencies. It is worth mentioning that as early as June this year, Bloomberg analyst James Seyffart commented that launching such products in the U.S. would be “extraordinary.”