Bitcoin, Ethereum Combined ETFs from Hashdex and Franklin Templeton Approved by US SEC

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As a seasoned crypto investor who’s weathered numerous market cycles and witnessed the evolution of this digital frontier, I can’t help but feel a mix of excitement and caution as the US Securities and Exchange Commission (SEC) approves Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton.

As a researcher, I’m thrilled to share that on Thursday, the United States Securities and Exchange Commission (SEC) gave the green light for crypto index ETFs from both Hashdex and Franklin Templeton. These innovative investment products grant exposure to the leading cryptocurrencies: Bitcoin [BTC] ($95,207) and Ethereum [ETH] ($3,284).

In its announcement, the securities regulator stated that Nasdaq and Cboe BZX proposed rule changes while trading shares of the products. Hashdex and Franklin Templeton have been pursuing the approval of this crypto ETF since May 2024.

Eric Balchunas, Bloomberg’s senior ETF analyst, also verified the news. He mentioned that these ETFs, having a roughly 80/20 split between Bitcoin and Ether and being market cap-weighted, are set to debut in January. Balchunas further pointed out that Hashdex and Franklin Templeton will be the pioneers in launching these products, signifying a substantial step forward in the realm of cryptocurrency investment.

In their justification for this decision, the U.S. Securities and Exchange Commission emphasized that the revised submissions align considerably with the representations found in earlier approved filings for a Bitcoin ETP and an Ether ETP. Regarding this progression, Nate Geraci, President of ETF Store, commented:

As an analyst, it’s intriguing to speculate whether BlackRock or other entities might follow suit and introduce comparable ETFs in the near future. Regardless of who takes the first step, I am confident that these products will garner significant interest due to their appeal. Advisors are particularly drawn to diversification, especially when it comes to emerging asset classes such as cryptocurrencies.

Bitcoin ETFs and Ethereum ETFs See Net Outflows amid Crypto Market Crash

For about two weeks, there had been consistent investments into Bitcoin and Ethereum ETFs in the U.S., but on Thursday, these ETFs experienced overall withdrawals instead. Remarkably, US Bitcoin ETFs collectively withdrew an impressive $671 million the previous day, with Fidelity’s FBTC recording the largest withdrawal at $208 million. Grayscale’s mini-Bitcoin ETF (BTC) followed closely behind with a withdrawal of $188 million, and Ark Invest’s ARKB saw withdrawals totaling $108 million. Conversely, BlackRock’s IBIT remained unchanged, seeing neither inflows nor outflows.

Yesterday, U.S.-based Ethereum ETFs experienced a total withdrawal of approximately $60 million. The majority of these funds, around $58 million, were withdrawn from Grayscale’s ETHE, while BlackRock’s ETH saw no net changes in its holdings.

As a researcher, I’ve observed a significant plunge in the Bitcoin price, which currently stands at around $95,000. This decline coincides with a broader market selloff that has propelled total market liquidations to surpass the billion-dollar mark. From its all-time high of $108K, Bitcoin has already experienced a correction of over 10%. Some market analysts are even forecasting a potential drop to $90,000.

Conversely, the price of Ethereum (ETH) saw a significant drop, falling by approximately 9% to reach around $3,350. This correction exceeded 15%, following a rejection at $4,000 earlier in the week. The decline in ETH price has had a downward pull on the entire altcoin market.

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2024-12-20 12:15