SEC Approves Dual Bitcoin-Ethereum ETFs from Hashdex and Franklin Templeton

• SEC approves dual Bitcoin and Ethereum ETFs, expanding institutional crypto access.
• Despite market turbulence, SEC’s approval signals growing crypto mainstream recognition.
• Litecoin could be next in line for ETF approval amid potential SEC leadership shift.

The U.S. Securities and Exchange Commission (SEC) has approved launching dual Bitcoin and Ethereum exchange-traded funds (ETFs) from financial firms Hashdex and Franklin Templeton. This approval marks a significant expansion of institutional access to two of the largest digital assets in the market, Bitcoin and Ethereum, through spot-based investment vehicles. 

The SEC’s approval covers the Hashdex Nasdaq Crypto Index US ETF and the Franklin Templeton Crypto Index ETF. Franklin Templeton’s application received expedited clearance after the firm demonstrated compliance with existing standards for commodity-based trust shares. This rapid approval highlights the SEC’s growing recognition of crypto as a mainstream financial asset.

The timing of these approvals is notable, as they come amid significant market turbulence. According to CoinGlass data, over $1 billion in liquidations occurred within 24 hours. During this period, Bitcoin sharply declined, dropping over 8% from its high of $105,000 to below $96,000. 

Ethereum faced an even steeper decline, falling about 15% from its peak of $3,440. Solana also saw a similar drop, with its price falling 15%, now trading around $196. Despite the market downturn, the SEC’s approval of these ETFs signals the ongoing interest in regulated crypto financial products.

The approval of dual Bitcoin and Ethereum ETFs aligns with recent predictions from Bloomberg analysts, who had speculated that the SEC would eventually approve these products.

Analysts believe Litecoin, a Bitcoin fork, could be the next cryptocurrency to receive ETF approval. Litecoin’s potential classification as a commodity makes it a strong candidate for similar regulatory scrutiny and approval soon.

Despite the recent ETF approvals, the path for other cryptocurrencies, such as Solana and XRP, remains uncertain. Regulatory challenges continue to cloud the future of crypto ETFs involving these assets. 

However, there is speculation that changes within the SEC, particularly with a potential leadership shift in 2025 under Paul Atkins, may lead to more favorable conditions for crypto ETF approvals in the future.