The SEC has approved Hashdex, the first hybrid Bitcoin-Ethereum ETFs from Franklin Templeton

After several extended reviews since June of this year, the Securities and Exchange Commission (SEC) has finally approved the first spot exchange-traded facility combining Bitcoin and Ethereum.

The agency authorized Nasdaq to list the Hashdex Nasdaq Crypto Index US ETF and the Cboe BZX Exchange Franklin Crypto Index ETF. give away was released on Thursday.

“The proportion of bitcoins and ether each Trust will hold will be based on a free-floating market capitalization,” the statement said.

Bloomberg ETF Senior Analyst Eric Balchunas waits Funds launched in January reflect current market capitalization with an approximately 80% Bitcoin and 20% Ethereum allocation.

Funds must meet ongoing listing requirements and provide transparency around portfolio holdings and valuations. Both exchanges monitor compliance and may initiate delisting procedures if compliance is not met.

ETF shares are traded in accordance with the rules of equity securities on both exchanges. Funds distribute daily indicative values ​​every 15 seconds during regular trading hours.

The approval comes amid continued significant activity in the current crypto ETF markets, with current Bitcoin products dominating BlackRock’s IBIT with $56 billion in assets under management (AUM) and volume exceeding $4.4 billion.

BlackRock’s ETF is followed by Fidelity ( FBTC ) and Grayscale ( GBTC ), both of which have close to $20 billion in AUM.

Current data Coinglass has revealed significant outflows across major funds on December 19, with net negative movements of approximately $671 million.

Being comfortable

In August, SEC A Long term for review Wednesday called for ETFs to provide “sufficient time to consider the proposed rule change and the issues it raises.”

Franklin Templeton’s submission received “accelerated approval” based on its similarity to previously approved spot crypto exchange-traded products (ETPs). The SEC also noted that CME futures continued to exhibit high market correlations.

One of the main factors that the SEC considers in this filing is tracking sharing. This arrangement is an agreement between exchanges to share trading data and important market information to help detect and prevent fraud and manipulation in related markets.

The hybrid Bitcoin-Ethereum ETF demonstrated this with a “significantly large regulated market,” the SEC said, explaining how this new financial product complies with commodity-based fiduciary standards.

The approval hints that the SEC is comfortable with dual activity frameworks as long as they meet their standards and are sufficiently linked to established markets. Until now, spot crypto ETFs were limited to single asset exposure.

“Advisors love diversification, especially in an emerging asset class like crypto,” said Nate Geraci, president of ETF Store, discussed the thread approval on X “I expect there will be significant demand for these products.”

Geraci also noted that it would be “interesting” to see other crypto ETF issuers follow suit and launch similar products.

The SEC did not immediately return a request for comment.

Edited by Sebastian Sinclair