The United States Securities and Exchange Commission (SEC) has approved the first-ever dual Bitcoin and Ethereum Exchange-Traded Funds (ETFs), a significant milestone for crypto adoption.
Institutional investors can now access Bitcoin and Ethereum through regulated investment vehicles that prioritize spot-based investments thanks to this clearance, which was given to asset managers Hashdex and Franklin Templeton.
The two ETFs approved are the Franklin Templeton Crypto Index ETF and the Hasdex Nasdaq Crypto Indext US ETF. Both will be listed on the Nasdaq and Cboe BZX exchanges, enabling direct trading in Bitcoin and Ethereum.
With an estimated proportion of 80% Bitcoin and 20% Ethereum, these ETFs will primarily hold Bitcoin and Ethereum.
Amid significant market volatility, the approval comes, with recent liquidations exceeding $1 billion following notable dips in Bitcoin and Ethereum prices. Recently, Bitcoin fell below $96,000, while Ethereum dropped to around $3,440.
This development is expected to enhance institutional access to crypto, potentially stabilizing the market by providing a regulated avenue for investment.
The SEC's ruling shows a change in strategy regarding digital assets, from outright rejection to a more accommodative posture that acknowledges the increasing incorporation of cryptocurrencies into traditional financial markets.
The launch of these ETFs is expected in January 2025, marking a new chapter in the evolution of crypto investment products.
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