Historic SEC Approval: Are Dual Crypto ETFs the Next Big Thing?

The SEC of the United States has reportedly made a historic decision to allow Bitcoin-Ether ETFs from Hashdex as well as Franklin Templeton. These approvals, given on 19 December 2017, are a major boost to the cryptocurrency business as digital assets continue to seep into conventional finance departments.

Both ETFs will enable investors to invest in two leading cryptocurrencies – spot Bitcoin (BTC) and Ether (ETH) in a very structured manner. As stated in official filings, the Hashdex Nasdaq Crypto Index US ETF will be listed on the Nasdaq Stock Market, and Franklin Templeton’s ETF will be listed at the Cboe BZX Exchange.

SEC Approval Buoys Crypto Markets

This development can be regarded as a triumph for the cryptocurrency industry since it received approval from TWO regulatory bodies. Hashdex’s fund share, the Nasdaq Crypto Index US ETF, will again reference the Nasdaq Crypto US Settlement Price Index and incorporate both Bitcoin and Ether. On the other hand, the Franklin Crypto Index ETF shall track the Institutional Digital Asset Index, a benchmark of popular digital assets.

To this end, the SEC made the above decision after considering some changes to the filings made by both firms. More to the point, the updated application by Franklin Templeton was filed on December 18 and got clearance on an ‘accelerated basis’, which is a rather unusual step pointing to the fact that BNK is gaining confidence in crypto businesses.

“Will be interesting to see if BlackRock or others attempt to piggyback on this and launch similar ETFs,” said Nate Geraci on his Twitting page, X (formerly Twitter), on December 19.

“However, I strongly believe that there will always be reasonable demand for most of these products. Advisers are big fans of diversification strategies. Especially in an evolving asset class like Crypto.”

Basically, Geraci’s forecast is in line with increasing trends in the global market of crypto ETFs among institutional and retail purchasers.

NYSE Arca Awaits Approval for Crypto Index ETF

Finally, Hashdex and Franklin Templeton can celebrate their recent successes, but other firms still struggle through the regulatory thicket. According to the news published, the NYSE Arca has suggested the possible listing of a Grayscale crypto index ETF. The entrant ETF would invest in a balanced pool of spot cryptos such as Bitcoin and Ether.

While NYSE Arca submitted the application earlier this year, it has not been approved by the SEC. Likewise, Bitwise Asset Management also has its petition in waiting regarding holding an ETF of Bitcoin and Ether.

Many people in the industry believe that the approval given to Hashdex and Franklin’s ETF applications might help clear other related applications that are currently pending approval from the SEC.

The approvals granted by the commission were tendered under the Securities Exchange Act of the issuers, who must employ rules that will deter fraud and manipulation as well as protect the investors.

Recommendations for the Crypto Industry and Investors 

Hashdex and Franklin Templeton’s ETFs became the first institutional breakthroughs when approved by the SEC. These ETFs are ETFs that track the regulated investment products, thus making it easier for investors to invest in Bitcoin or Ether without having to invest in the physical tokens.

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Hashdex and Franklin Templeton’s approvals may also be precedential for future innovation of crypto-associated linked financial products. This they say is proof of maturing regulatory systems in the industry.

“Each approval shows that the SEC acknowledges growth in demand for various types of crypto investments,” Franklin Templeton’s spokesman reported.

These ETFs may include institutional investors, day traders, or any other investor wishing to capitalize on new and safer means of investing in digital currencies.

Conclusion: A Step Forward Amid Growing Crypto Momentum

It is good news for the crypto industry that the SEC decided to approve Hashdex’s and Franklin Templeton’s Bitcoin-Ether ETF at the same time. It reveals its rather conservative yet liberal approach to the adoption of digital assets into the financial system.

However, questions persist regarding other ETF uses, such as NYSE Arca’s Grayscale crypto index ETF. The fact that the most recent action taken by the SEC could be deemed precedent does not necessarily mean a positive response to all proposals that are still pending.

As the market for cryptocurrency progresses day by day, people are expecting an increase in regulated investment instruments such as ETFs. This milestone can elicit the industry’s ability to continue developing in the future and create more innovative solutions. Keep following The Bit Journal for the latest crypto updates.

FAQs

1. What is meant by Bitcoin-Ether ETFs?

Bitcoin Ether ETFs are simply ETFs that allow investors to invest in Bitcoin and Ether without the need to buy the two assets physically.

2. Which firms got approval from the SEC for their respective ETFs?

On the 19th of Dec, the SEC green-lighted crypto index ETFs from Hashdex and Franklin Templeton.

3. Where would the exchange-traded funds be trading?

Hashdex’s ETF will be licensed on the Nasdaq stock market, while Franklin Templeton’s ETF will be listed on the Cboe BZX Exchange.

4. Why is the approval from the SEC even important?

The approval shows a gradual integration of cryptocurrencies into the conventional financial markets by offering authorized investment products to people.

5. What further crypto ETFs are yet to be approved?

There is currently an application for the Grayscale crypto index ETF on NYSE Arca, and Bitwise is also waiting on the approval of its crypto ETF.

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