After several lengthy reviews since June of this year, the Securities and Exchange Commission (SEC) has approved the first spot exchange-traded funds combining Bitcoin and Ethereum. The regulator has allowed the Nasdaq exchange to register the Hashdex Nasdaq Crypto Index US ETF, and the Cboe BZX exchange to register the Franklin Crypto Index ETF.
“The proportion of Bitcoin and Ethereum that each trust will hold will be based on the market capitalization that is freely traded,” the statement said.
Senior Bloomberg analyst Eric Balchunas expects the funds to launch in January with approximately 80% Bitcoin and 20% Ethereum, reflecting the current market capitalization. The funds must meet listing requirements and maintain transparency regarding their portfolios and pricing. Both exchanges will monitor compliance and may initiate delisting procedures if the requirements are not met.
Trading of ETF shares will be governed by the existing trading rules on both exchanges. The funds will disseminate intraday indicative values every 15 seconds during regular trading hours.