Bitcoin and Ethereum Hybrid ETFs Approved by SEC: New Chapter for the Market
The Securities and Exchange Commission (SEC), after months of analysis and some twists and turns, has finally given the green light to the first exchange-traded funds (ETFs) that combine Bitcoin e Ethereum , marking an explosive mix of the two biggest players in the crypto universe into a single financial product.
This historic approval marks a new chapter for cryptocurrency investments, opening the doors to an even larger audience seeking diversification and practicality, enabling investment in Bitcoin and Ethereum in a regulated manner and with the ease of traditional stock exchange trading.
According to a document released by the SEC on Thursday, December 19, Nasdaq will list the Hashdex Nasdaq Crypto Index US ETF, while Cboe BZX Exchange will list the Franklin Crypto Index ETF. The regulator explained that the proportion of Bitcoin and Ethereum in each fund will be determined by the market capitalizations of the outstanding shares. In other words, the higher the market cap of each cryptocurrency, the higher its representation in the ETF.
“The proportion of bitcoin and ether to be held by each Trust will be based on the market capitalizations of outstanding shares,” the document reads in part.
Eric Balchunas, senior ETF analyst at Bloomberg, estimated that the products are expected to launch in January, with an approximate split of 80% in Bitcoin and 20% in Ethereum, reflecting the current market capitalizations of both cryptocurrencies.
“Bitcoin/ether spot ETFs have been approved by the SEC (as expected). Likely to launch in January. They are market cap weighted, so 80/20 btc/eth approx. Notable that Hashdex and Frankie are first. Good for them,” the expert wrote.
This approval represents a major milestone for the crypto market, bringing more legitimacy and accessibility to institutional and retail investors. Combining Bitcoin, the king of cryptocurrencies, with Ethereum, the queen of smart contracts, into a single ETF offers a unique opportunity for diversification and exposure to two of today’s most promising digital assets.
Will BTC and ETH ETFs Lead US Crypto Funds in 2025?
The cryptocurrency market is buzzing with expectations for 2025, with one of the main focuses being the growth of crypto exchange-traded funds (ETFs) in the United States. With the recent approval of Bitcoin ETFs and growing institutional interest, analysts believe that next year will be a milestone for the industry.
The possibility of a combined Bitcoin and Ethereum ETF has been generating even more excitement. According to Eric Balchunas, senior ETF analyst at Bloomberg, and James Seyffart, this type of fund can open the doors for a new wave of cryptocurrency ETFs, including those tracking assets like Litecoin (LTC) and Hedera (HBAR).
“We expect a wave of crypto ETFs next year, though not all at once. First are likely btc+eth combo ETFs, then probably Litecoin (because its btc fork = commodity), then HBAR (because it’s not labeled a security), then XRP/Solana (which have been labeled as securities in pending lawsuits),” he wrote.
However, the approval of crypto ETFs still faces regulatory challenges, especially in the U.S. The Securities and Exchange Commission (SEC) has already rejected applications for ETFs related to Solana and XRP, citing investor protection concerns.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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