US SEC Approves Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton
On Thursday, the US Securities and Exchange Commission (SEC) approved crypto index ETFs from Hashdex and Franklin Templeton. These ETFs provide exposure to Bitcoin #BTC and Ethereum #ETH. The specific ETFs are the Franklin Templeton Crypto Index ETF and the Hashdex Nasdaq Crypto Index US ETF.
The SEC's announcement indicated that Nasdaq and Cboe BZX proposed rule changes for trading these products. Hashdex and Franklin Templeton have sought ETF approval since May 2024.
Bloomberg’s senior ETF analyst, Eric Balchunas, confirmed that these market cap-weighted ETFs will have an approximate 80/20 split between Bitcoin and Ether, launching in January. This development marks a significant milestone as Hashdex and Franklin Templeton become the first to introduce these products in the cryptocurrency investment space.
The SEC noted that the revised filings align with previous approvals for spot Bitcoin and Ether ETP proposals. ETF Store President Nate Geraci commented on potential competition, stating:
“Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs… Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto”.
Bitcoin ETFs and Ethereum ETFs Experience Net Outflows
After a period of inflows, US spot Bitcoin and Ethereum ETFs reported net outflows on Thursday. Total outflows from US Bitcoin ETFs reached $671 million, with Fidelity's FBTC leading at $208 million. Grayscale's mini-Bitcoin ETF (BTC) recorded $188 million in outflows, while Ark Invest's ARKB saw $108 million. BlackRock's IBIT experienced no net flows.
US Ethereum ETFs also faced net outflows of $60 million, primarily from Grayscale's ETHE, which had $58 million in outflows, while BlackRock's ETH remained unchanged.
The Bitcoin price fell to $95,000 amid a broader market selloff, with total liquidations exceeding $1 billion. BTC has corrected over 10% from its all-time high of $108K, with some analysts predicting a further drop to $90,000.
Similarly, Ethereum (ETH) dropped more than 9%, reaching $3,350 after facing rejection at $4,000 earlier this week, contributing to a decline in the overall altcoin market.