- The SEC approves dual ETFs, combining Bitcoin and Ethereum, simplifying exposure to leading digital assets for institutional investors.
- Investment firms Hashdex and Franklin Templeton secure accelerated approval for groundbreaking combined Bitcoin-Ethereum financial products.
- Dual ETFs leverage market capitalization ratios, offering 80% Bitcoin and 20% Ethereum exposure in a unified instrument.
The U.S. Securities and Exchange Commission (SEC) has approved the first exchange-traded funds (ETFs) combining Bitcoin (BTC) and Ethereum (ETH). These ETFs, representing the two largest digital assets by market capitalization, aim to provide investors with a streamlined way to gain exposure to both cryptocurrencies in a single financial product.
The applications for these ETFs were submitted by investment firms Hashdex and Franklin Templeton. According to SEC documentation, Franklin Templeton’s updated proposal, submitted on December 18, received approval through an accelerated process. Hashdex’s ETF will trade on the Nasdaq stock market, while Franklin Templeton’s will list on the Cboe BZX exchange.
The SEC explained that the approval process was expedited due to the similarity of these products to previously approved spot Bitcoin and Ethereum ETFs earlier this year. This efficiency in regulatory review has enabled the rapid development of these dual-exposure products.
Combined Exposure to Bitcoin and Ethereum
These ETFs will allow investors to access Bitcoin and Ethereum in a single instrument. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, predicts the initial asset allocation may reflect the cryptocurrencies’ respective market caps, potentially splitting the portfolio 80% Bitcoin and 20% Ethereum. This allocation strategy would align with the current market.
Balchunas suggests these ETFs could become available as early as January, offering U.S. investors an integrated way to diversify their digital asset portfolios.
Implications for the Crypto Investment Market
Industry experts see this approval as a pivotal development for the cryptocurrency investment space. Nate Geraci, an investment advisor specializing in ETFs, believes this decision could encourage other major firms, such as BlackRock, to develop similar products. BlackRock already manages the largest spot Bitcoin fund globally and offers spot Ethereum products.
Geraci also noted the strong market interest in such diversified instruments, stating:
“Financial advisors prioritize portfolio diversification, particularly in emerging asset classes like cryptocurrencies.”
The introduction of combined Bitcoin-Ethereum ETFs may further solidify institutional confidence in digital assets while expanding their accessibility.
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