SEC Approves First Dual ETFs: Institutional Pressure Rising
In a move that could potentially change the game for cryptocurrency trading, the SEC has given the green light to the first-ever dual Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton. This means that institutional investors now have a new way to access these two top cryptos through investment vehicles directly tied to their value in the market.
The road to approval for these dual ETFs wasn’t easy. Franklin Templeton submitted its application back in August 2024, followed by Hashdex in October of the same year. The SEC, known for its cautious stance on cryptocurrency, took its time to review and ensure that the proposals met all financial regulations to protect investors from potential risks in such a volatile market.
After some tweaking and clarifications from both companies, Franklin Templeton’s proposal gained accelerated clearance due to its alignment with existing commodity-based trust share standards. This aided in pushing it through the regulatory process more smoothly. While Hashdex faced a couple of delays, recent changes by Nasdaq and Cboe BZX have made it easier for institutions to dip their toes into the world of crypto investments, leading to both funds being listed.
With the approval of these two ETFs, the market is looking at a new level of stability and professionalism. The focus of these funds will primarily be on holding Bitcoin and Ethereum, with an 80-20 split in favor of Bitcoin initially. Their investment strategy will be centered on spot-based trades, steering clear of riskier futures or staking approaches, in line with regulatory preferences that emphasize transparency and safeguarding investor interests.
The timing of these approvals couldn’t be more critical. Recent price swings in Bitcoin and Ethereum have put a spotlight on the need for reliable investment products that can help stabilize the market and attract more institutional players. As we see Bitcoin’s value dropping by over 8% from $105,000 to below $95,000, the introduction of these dual ETFs could potentially open up a whole new chapter in the world of cryptocurrency trading.
