SEC Approves First Bitcoin and Ethereum Combination ETFs
Date: 2024-12-26 Author: Henry Casey Categories: CRYPTO PAYMENTS
The asset structure will be based on the market capitalization of the publicly traded tokens, as stated in the official documentation.
Hashdex filed for the Hashdex Nasdaq Bitcoin & Ethereum ETF on the Nasdaq exchange in June, and Franklin Templeton followed suit in August with the Franklin Crypto Index ETF.
Analysts note the significance of this approach. Bloomberg expert James Seyffarth called the cap-weighted ETF a "logical solution," while his colleague Eric Balchunas suggested that the funds would have approximately 80% and 20% of Bitcoin and Ethereum, respectively, reflecting their current market value.
Issuers are subject to strict rules on portfolio transparency and pricing methods. Exchanges are responsible for enforcing these standards, and they have the right to initiate delistings in case of violations.
The approval of these funds comes amid excitement around the existing BTC-ETF and ETH-ETF. Since their launch in January, the BTC-ETF has raised $36.33 billion, while the ETH-ETF has raised $2.4 billion in just a few months.
However, on December 19, both types of funds experienced their first outflow: BTC-ETF lost $680 million, while ETH-ETF lost $60.5 million after long periods of inflows lasting 18 and 15 days, respectively.
The ETF Store President Nate Geraci is confident that the success of Hashdex and Franklin Templeton will pave the way for other companies, including giants such as BlackRock.
"Advisers value the opportunity to diversify, especially in new asset classes such as cryptocurrencies. I expect high demand for such products," he noted.
According to Sygnum, every $1 billion inflow into BTC-ETFs can increase the price of Bitcoin by 3-6%.
Earlier, industry representatives, including YouHodler top manager Ruslan Lienkha, emphasized the prospects of adding staking to Ethereum-ETFs. Bernstein analysts expressed a similar opinion, suggesting that the success of such funds could lead Ethereum to new records.
