The US Securities and Exchange Commission (SEC) has approved proposed dual Bitcoin and Ethereum exchange-traded funds from Franklin Templeton and Hashdex.
This decision, which comes at a crucial time for the crypto market, opens up new opportunities for investors interested in cryptocurrencies and digital assets, and reflects the significant change that is coming in the regulation of crypto assets in the United States.
The approval of these dual ETFs is an important milestone for the cryptocurrency ecosystem, as it opens up new and innovative avenues for investors who wish to participate in the Bitcoin and Ethereum market to do so without having to face a number of challenges, such as technical complexity and custodial risks.
With the approval of these ETFs, investors will be able to access the two main cryptocurrencies in the market by capitalization in the spot market, through the purchase and sale of shares on the stock exchange, in the same way as they do with shares of traditional companies.
Facilitating simplified and secure access to Bitcoin and Ethereum
The main advantage of these ETFs is that they offer simplified and secure access to Bitcoin and Ethereum. Through the Franklin Templeton Crypto Index ETF and the Hashdex Nasdaq Crypto Index US ETF, investors will not need to worry about the custody of cryptocurrencies, as this role will be assumed by Franklin Templeton and Hashdex.
In August, Franklin Templeton had indicated which was looking to expand its offering in the ETF and cryptoasset market with a new exchange-traded fund that would respond to the growing demand for cryptocurrency-based investments. On the other hand, Hashdex had featured that its new crypto investment fund would provide investors with regulated access to the most liquid and dynamic assets in the cryptocurrency ecosystem.
Commenting on the launch of an ETF offering diversified exposure to the two largest cryptocurrencies on the market, Nate Geraci, president of ETF Store, said that separate Bitcoin and Ethereum spot ETFs had been a huge success, prompting fund managers and issuers to “go back to the lab and start cooking up new products.” “The natural evolution of spot cryptocurrency ETFs is multi-asset products”, Geraci added.
A regulatory shift following Gensler's imminent departure from the SEC
The approval of these ETFs comes in a context of significant changes in the regulatory and political landscape in the United States. On the one hand, Gary Gensler, current chairman of the SEC, is about to leave his post, and his departure has been closely followed by the crypto market. Gensler has been known for his restrictive approach to cryptocurrency regulation, and his departure could mark the beginning of an era of more flexible regulation, which encourages innovation and market development.
Moreover, Donald Trump, who has promised a more favorable approach towards cryptocurrencies, is about to take over the US government and the crypto community hopes that his new administration will be able to establish clearer and more flexible regulation for digital assets.
On the other hand, the approval of these dual Bitcoin and Ethereum ETFs has the potential to generate a significant impact on the cryptocurrency market. At a time when the bitcoin price is quoted below $100.000 dollars and that the ether price has fallen below $3.500, this news could be the catalyst that the market needs to regain its momentum. The entry of institutional investors, who seek to diversify their portfolios with digital assets, could increase the demand and, therefore, the price of these cryptocurrencies. In addition, this decision represents a change in the perception of risk and opportunity that the SEC has towards digital assets.
21shares prepares for a Polkadot ETF
Interestingly, the approval of these dual Bitcoin and Ethereum ETFs coincides with the registration that 21shares has made of its Polkadot ETF in Delaware. Reports indicate that the fund issuer has registered a new investment product, called 21Shares Polkadot Trust, as part of preparations ahead of its possible launch.
21shares currently has two separate Bitcoin and Ethereum spot ETFs, while it seeks regulatory approval to expand its offering and add other major cryptocurrencies, such as Solana, Ripple and Polkadot, to its exchange-traded product offering.
