The U.S. Securities and Exchange Commission (SEC) has approved the first crypto index exchange-traded funds (ETFs) from Hashdex and Franklin Templeton.
These funds will initially hold spot Bitcoin and Ether based on their market capitalizations, with an approximate weight of 80% Bitcoin and 20% Ether. Both ETFs are expected to launch in January.
The Hashdex Nasdaq Crypto Index U.S. ETF will trade under the ticker NCIQ, while Franklin Templeton’s fund will use the ticker EZPZ. Each fund will have BitGo and Coinbase as core custodians. The SEC's approval follows initial delays and was granted based on the funds' substantial similarities to previously approved spot Bitcoin and Ether ETFs.
Hashdex initially filed its registration statement with the SEC in July, while Franklin Templeton submitted its filing in August. The SEC's rationale for approval highlighted these funds’ compliance with criteria already established for other crypto ETFs.
Eric Balchunas, a Bloomberg ETF analyst, noted the anticipated launch of these combo ETFs may attract investor interest due to the inherent diversification they offer.
The approval marks a significant development in the U.S. crypto ETF market, which has seen substantial growth over the past year. Following the January approval of 11 spot Bitcoin ETFs, the market has attracted over $36 billion in net inflows.
In contrast, the market for spot Ethereum ETFs has been less robust, generating approximately $2.4 billion in net inflows since their debut in July.