The first hybrid Bitcoin-Ethereum ETFs got SEC approval on December 19, 2024. The Securities and Exchange Commission approved two new funds that combine both cryptocurrencies: Hashdex Nasdaq Crypto Index US ETF and Franklin Templeton’s Crypto Index ETF.
Senior Bloomberg ETF analyst Eric Balchunas said, “They weigh market capitalization like 80/20 BTC/ETH roughly. Notable that Hashdex & Frankie are first. Good for them.”
The spotbitcoin/ether combo ETFs have been approved by the SEC (as predicted). Probably launched in January. They weigh a lot of cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them. https://t.co/o2ri3XpqZi
— Eric Balchunas (@EricBalchunas) December 20, 2024
How SEC-Approved Bitcoin-Ethereum ETFs Manage Market Volatility and Security Risks
Regulations and safety measures
The SEC spent six months reviewing the hybrid Bitcoin-Ethereum ETFs. The SEC filing says, “The proportion of bitcoin and ether to be held by each Trust will be based on free-floating market values.” These cryptocurrency ETFs must be transparent about their holdings and prices. Like regular stocks, they update their values every 15 seconds during trading.
Market impact and trading dynamics
In the Bitcoin ETF space, BlackRock’s IBIT leads with $56 billion. Both Fidelity’s FBTC and Grayscale’s GBTC manage $20 billion each. The latest figures show investors withdrew $671 million from large funds on December 19. Meanwhile, the Ethereum ETF sector continues to draw in large investors.
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Investment structure and supervision
Will be interesting to see if BlackRock or others try to piggyback on this and launch similar ETFs…
Regardless, I expect there will be meaningful demand for these products.
Advisors LOVE diversification.
Especially in an emerging asset class like crypto.
— Nate Geraci (@NateGeraci) December 19, 2024
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Future market expectations
Experts believe that many people will want these hybrid cryptocurrency ETFs. Nate Geraci, CEO of the ETF Store, notes, “Advisors love diversification, especially in an emerging asset class like crypto. I expect there will be meaningful demand for these products.” The SEC now accepts funds that combine two cryptocurrencies if they follow the rules.
Market response and implementation
The cryptocurrency ETF from Franklin Templeton shows how far crypto investing has come. When the hybrid Bitcoin-Ethereum ETFs launch in January, people will be able to invest in both major cryptocurrencies at the same time. This comes as major financial firms enter crypto and the rules become clearer.
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