SEC simultaneously approves Hashdex, Franklin’s Bitcoin-Ether ETFs

As a seasoned researcher with a penchant for all things finance and technology, I must say that the recent SEC approvals of Hashdex and Franklin Templeton’s Bitcoin and Ether index ETFs are nothing short of groundbreaking. With a background spanning decades in the industry, I’ve witnessed countless developments reshaping our financial landscape, but this particular milestone stands out as a significant leap forward.

The United States Securities and Exchange Commission (SEC) has given its approval for the launch of Bitcoin and Ether index exchange-traded funds (ETFs) by Hashdex and Franklin Templeton. On December 19, the SEC made this decision, allowing Hashdex’s Nasdaq Crypto Index US ETF to trade on the Nasdaq stock market, while also giving a go-ahead for Franklin Templeton’s separate ETF that will be traded on the Cboe BZX Exchange.

The SEC said Franklin Templeton’s updated Dec. 18 filing was approved on an “accelerated basis.”

Both approvals were based on the amended filings, the Trusts’ structure and the operation terms from both firms being “substantially similar” to spot Bitcoin ETP and spot Ether ETP proposals already approved under previous SEC orders.

Additionally, the commission confirmed that the proposed guidelines adhere to the standards set by the Exchange Act. This law mandates entities to establish safeguards to deter deceptive or unfair practices, shield investors, and uphold public welfare, among other conditions.

In a December 19th post on X, Nate Geraci, president of The ETF Store – an investment advisor focusing on Exchange-Traded Funds (ETFs) – expressed his belief that the Securities and Exchange Commission’s (SEC) approval might encourage other companies to follow suit with similar actions.

It would be intriguing to observe whether BlackRock or other companies might follow suit and introduce comparable Exchange-Traded Funds (ETFs),” he mentioned.

“Regardless, I expect there will be meaningful demand for these products. Advisers LOVE diversification. Especially in an emerging asset class such as crypto,” Geraci added.

In August, Franklin Templeton submitted an application to the SEC for the approval of a cryptocurrency index ETF, however, the SEC postponed making a decision on this matter until November 20th.

On November 25th, asset manager Hashdex resubmitted their revised application for an Exchange Traded Fund (ETF), having previously filed an amended version in October following the Securities and Exchange Commission’s request for additional time to consider whether to approve the initial proposal.

Besides Franklin Templeton and Hashdex, other companies also planned to introduce a Crypto Index ETF in the United States this year. On November 26th, the NYSE Arca applied for listing a Bitwise ETF that would invest in both Bitcoin and Ether.

In October, NYSE Arca also expressed interest in listing a Grayscale crypto index ETF holding a diverse basket of spot crypto. In November, US regulators indicated they were considering the listing for approval. 

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2024-12-20 06:58