After several months of extended reviews, the U.S. Securities and Exchange Commission (SEC) has approved the first-ever spot exchange-traded funds (ETFs) combining Bitcoin and Ethereum.
The agency has authorized Nasdaq to list the Hashdex Nasdaq Crypto Index US ETF and the Cboe BZX Exchange to list the Franklin Crypto Index ETF, according to a filing released Thursday, News.az reports, citing Decrypt portal.
“The proportion of bitcoin and ether to be held by each Trust will be based on free-float market capitalizations,” the filing reads.
Senior Bloomberg ETF analyst Eric Balchunas expects the funds to launch in January with an approximate 80% Bitcoin and 20% Ethereum split, reflecting current market capitalizations.
The funds must comply with continued listing requirements and maintain transparency around portfolio holdings and pricing. Both exchanges will monitor compliance and can initiate delisting procedures if requirements aren’t met.
Trading in the ETF shares will be subject to existing equity securities rules on both exchanges. The funds will disseminate intraday indicative values every 15 seconds during regular trading hours.
The approval comes as significant activity in existing crypto ETF markets continues, with current Bitcoin products showing BlackRock’s IBIT dominating with $56 billion in assets under management (AUM), with over $4.4 billion in volume.
BlackRock’s ETF is followed by Fidelity (FBTC) and Grayscale (GBTC), both of which stand closely with about $20 billion in AUM apiece.
Current data from Coinglass reveals substantial outflows across major funds on December 19, with net negative movements of roughly $671 million.
News.Az