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Highlights
- SEC approves Hashdex Nasdaq and Franklin Templeton Cboe crypto index ETFs.
- The ETFs will feature Bitcoin and Ethereum with potential future additions.
- These products could launch in January following SEC clearance.
The cryptocurrency space has seen major developments with the U.S. Securities and Exchange Commission (SEC) recently approving crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton. This decision marks a significant moment for the cryptocurrency market, as the SEC has given the green light to the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. Both ETFs are designed to provide exposure to Bitcoin and Ethereum, two of the largest and most prominent digital currencies.
Details of the Approval
The SEC's approval covers the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. These funds will primarily focus on Bitcoin and Ethereum, with an average weighting of 80% and 20%, respectively, but they may also include additional cryptocurrencies in the future. This move signals a step forward for the cryptocurrency sector, as these funds offer a regulated, traditional investment product for those looking to gain exposure to digital assets in a more conventional manner.
Rule Changes and Filing Amendments
Nasdaq’s proposal for the Hashdex ETF was amended in September, following its initial filing earlier in the year. Meanwhile, Franklin Templeton has worked to finalize its filing since September, submitting the updated filing to Cboe BZX for review. The filing’s accelerated clearance from the SEC reflects compliance with existing commodity-based trust share standards, facilitating the approval process.
The Path Forward
Following the approval, both the Hashdex Nasdaq Crypto Index ETF and the Franklin Templeton Crypto Index ETF are expected to become active by January, according to reports from industry sources. The approval indicates a softening stance from the SEC on cryptocurrency-related products, which could pave the way for additional crypto-focused ETFs in the future.
Market speculations have already begun, with predictions suggesting that other digital assets like Litecoin and HBAR might be the focus of future ETF approvals. These developments come ahead of major political changes, as Donald Trump’s upcoming inauguration might play a role in the evolving regulatory landscape for cryptocurrencies.
As the cryptocurrency market continues to mature, products like these crypto index ETFs from Hashdex and Franklin Templeton provide a new way for individuals and institutions to gain exposure to digital assets while operating within a regulated framework. This approval by the SEC may mark the beginning of broader acceptance of cryptocurrency products in traditional finance.
