The US Securities and Exchange Commission (SEC) has approved the first exchange-traded funds (ETFs) that combine bitcoin (BTC) and ether (ETH), Ethereum's native cryptocurrency, the two main digital assets on the market.
The new financial products were requested by investment firms Hashdex and Franklin Templeton.
According to the SEC, Franklin Templeton's updated filing, made on December 18, received approval through an "expedited" process .
The Hashdex ETF will be listed on the Nasdaq stock exchange, while the Franklin Templeton ETF will be available on the Cboe BZX exchange.
The approval was based on amended documents that the SEC said are “substantially similar” to the Bitcoin Spot ETF and the Ether Spot ETF previously approved in January and May of this year.
This similarity appears to have allowed the regulator to streamline the evaluation process for both applications.
Combined exposure to bitcoin and Ethereum
The new ETFs will allow investors to access bitcoin and ether within a single financial instrument. According to Eric Balchunas, an ETF specialist at Bloomberg Intelligence, these products could initially split their exposure based on the market capitalizations of the assets, with an approximate proportion of 80% in bitcoin and 20% in ether.
Balchunas estimates that these financial instruments could be launched as early as January next year. This launch would mark the first opportunity in the United States for investors to access both digital assets in a single ETF.
Market expectations
Nate Geraci, an investment advisor specializing in ETFs, believes that this approval could encourage other large asset managers, such as BlackRock, to explore similar products. It should be noted that BlackRock already has funds in bitcoin and ether cash, including the largest BTC fund in the world.
“I expect there will be significant demand for these products. [Investment] advisors love diversification. Especially in an emerging asset class like cryptocurrencies,” Geraci adds.
The approval of these ETFs represents a major step forward for the cryptocurrency industry, opening up more avenues for digital assets to be integrated into traditional markets. With their possible launch as early as next year, these products could redefine the way investors access bitcoin and ether, further cementing their place in the global economy.
