The U.S. Securities and Exchange Commission (SEC) has approved Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton. The move expands institutional access to the two largest crypto assets and provides access through spot-based investment vehicles. The approved ETFs include the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. However, Franklin Templeton’s ETF went through a fast-track review process.
Bitcoin and Ethereum ETFs Receive Approval After Delays
Franklin Templeton’s ETF application was approved earlier today. This is because the application complies with commodity-based trust standards. According to the application, the SEC accepted the rule changes proposed by Nasdaq and Cboe BZX. These developments have created excitement among investors. Popular artist Chad Steingraber said the following on the subject:
The Hashdex Crypto Index ETF has been approved by the SEC. It will initially include only BTC and ETH, but will add other assets over time, including XRP.
As we reported at Kriptokoin.com , Hashdex had filed its ETF application in June, but the SEC postponed its decision twice. However, it is thought that leadership changes in Washington have accelerated the approval process. The approval coincided with a period when crypto markets were volatile. The price of Bitcoin fell by more than 4% today, from $ 105,000 to below $ 97,499.88. This decline led to liquidations of more than $ 1 billion in crypto markets. ETF analyst Eric Balchunas said:
Launch expected in January. Will be market cap weighted, around 80% BTC and 20% ETH. Hashdex and Frankie being first is a big step.
Are Litecoin ETFs On The Way?
Bloomberg analysts predicted earlier this week that Bitcoin and Ethereum ETFs would be approved. Those predictions quickly came true. Analysts think Litecoin ETFs could be next.
Litecoin is recognized as a fork of Bitcoin and is considered a potential commodity by US regulations. However, uncertainty remains for other popular assets like Solana and XRP. Recent developments at the SEC suggest the agency may take a more positive approach to crypto ETFs.
Leadership Change at the SEC
Yesterday, the Senate Banking Committee rejected the reappointment of SEC Commissioner Caroline Crenshaw, meaning Gary Gensler’s anti-crypto agenda has lost one of its supporters. Crenshaw’s term ends in January, creating a leadership void at the SEC.
New leader Paul Atkins is likely to take a more positive approach to crypto ETFs, and this development could pave the way for more regulatory approvals in the crypto world.
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