$BTC SEC approves US's first crypto index ETF

Günay Caymaz

Author

Günay Caymaz

Publication Date 20.12.2024 15:45

SEC approves US's first crypto index ETF

© Reuters.

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Investing.com - The US Securities and Exchange Commission (SEC) has approved applications from Nasdaq and Cboe BZX Exchange, allowing Hashdex and Franklin Templeton to list and trade crypto index exchange-traded funds (ETFs). This development is considered an important step in the crypto world.

The Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF will initially invest 80/20 in total based on Bitcoin and Ethereum spot market values. According to Bloomberg ETF analyst Eric Balchunas, these ETFs are expected to launch in January. The first approval of crypto index ETFs in the US stands out as a significant milestone in the markets.

The crypto ETF market continues to expand

The approval decision made by the SEC on Thursday is noteworthy because it is very similar to the previously approved spot Bitcoin and Ethereum ETFs. Hashdex and Franklin Templeton's ETFs made history as the first crypto index ETFs to be approved in the US. Hashdex first applied for this ETF in June and was approved after amendments were made in November. Hashdex is considering adding other cryptocurrencies such as AVAX, LINK and LTC to its fund in the future.

Franklin Templeton similarly filed an S-1 in August. The SEC has granted expedited approval to Franklin Templeton’s application, noting that the fund could include more cryptocurrencies in the future. These new ETFs are seen as a significant step in diversifying and expanding the crypto market.

Despite historic ETF approvals, the market continues to decline

These approvals from the SEC are a sign that cryptocurrencies have entered the mainstream financial world.