The SEC approves Hashdex, Franklin’s bitcoin-ether ETF at the same time
The United States Securities and Exchange Commission (SEC) has given the green light to Hashdex and Franklin Templeton for their respective Bitcoin and Ether index exchange-traded funds (ETFs).
In a December 19 announcement, the SEC approved Hashdex's Nasdaq Crypto Index US ETF, which trades on the Nasdaq stock market. The regulator also approved the proposed Franklin Crypto Index ETF for the Cboe BZX exchange.
Both indexes contain Bitcoin (BTC) and Ether (ETH). The Franklin Crypto Index ETF tracks an institutional digital asset index designed to represent the performance of digital assets such as Bitcoin and Ether. Hashdex's Crypto Index ETF tracks Bitcoin and Ether, which are included in the Nasdaq Crypto US Settlement Price Index.
The SEC has granted Hashdex and Franklin Templeton permission to list and trade crypto index ETFs. Source: SEC
The SEC said Franklin Templeton's amended Dec. 18 filing was approved on an “accelerated basis.”
Both approvals are based on revised documents, with the trust structures and working terms of both companies being “substantially similar” to distinguishing the Bitcoin ETP and Ether ETP proposals previously approved in SEC orders.
Related: How to use index funds and ETFs for decent crypto income
The commission said the proposals meet the requirements of the Foreign Exchange Act, which requires issuers to have rules to prevent fraud and falsification and to protect investors and the public interest, among other requirements.
Nate Geracchi, president of ETF Store, an investment adviser who specializes in ETFs, speculated that the SEC's approval on Dec. 19 to X could prompt other firms to copy the move.
“It would be interesting to see if BlackRock or others try to capitalize on this again and launch similar ETFs,” he said.
“Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an asset class like crypto,” Gerasi added.
Source: Nate Gerasi
In August, Franklin Templeton applied to the SEC to approve a crypto index ETF, but the regulatory agency delayed its decision on November 20.
Asset manager Hashdex filed a second amended filing for the ETF on Nov. 25. It filed the first amended S-1 in October after the SEC asked for more time to approve the proposal.
Franklin Templeton and Hashdex weren't the only firms looking to launch a crypto index ETF in the United States this year.
On November 26, securities exchange NYSE Arca requested to list the Bitwise ETF, which contains both Bitcoin and Ether.
In October, NYSE Arca also expressed interest in listing a crypto-based Greyscale crypto index ETF that contains a basket of different positions. In November, US regulators indicated they were considering approving the listing.
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