SEC-approved BTC/ETH index ETF, digital assets breakthrough! Institutional funds ready to get on board?

Dual-asset ETF launched, making it easy for U.S. investors to allocate BTC and Ethercoin

The U.S. Securities and Exchange Commission (SEC) has officially approved two spot index ETFs combining BTC and Ethercoin, launched by Hashdex and Franklin Templeton, respectively. This marks the first time in the U.S. that spot ETFs covering both major cryptocurrency coins have appeared, bringing a significant breakthrough to digital asset investments originally dominated by single assets. According to official documents, Hashdex's ETF will be listed on Nasdaq, while Franklin Templeton will be listed on the Cboe BZX Exchange. Both funds will allocate BTC and Ethercoin based on market value weighting, and are expected to be open for investors to buy and sell from January next year.

According to the speculation of Eric Balchunas, a senior analyst at Bloomberg ETF, the initial allocation ratio is about 80% BTC and 20% Ethercoin. This milestone indicates that the US regulatory authorities are gradually relaxing their attitude towards the dual-asset structure, making the commodity attributes of the two major digital currencies more clear. For investment advisors, a dual-asset ETF with diversified risks may also be more attractive. Previously, the US market only had various ETFs targeting single BTC or Ethercoin. If investors want to simultaneously invest in the two major mainstream coins, they often need to purchase multiple products or conduct OTC transactions.

Source: X Bloomberg ETF Senior Analyst Eric Balchunas speculates that the initial allocation is approximately 80% Bitcoin, 20% Ethercoin

Unlike the cautious stance of the SEC towards spot cryptocurrency ETFs in the past, the successful approval this time is mainly due to the issuer and the exchange ensuring compliance with Commodity-Based Trust standards and establishing a sound regulatory cooperation mechanism. Key points, including trading data sharing, risk control, and prevention of market manipulation, all meet SEC requirements. As a result, the similarity between dual-asset ETFs and traditional ETFs increases, adding to the confidence of regulatory authorities in information transparency and market stability.

Subsequent or more extensive cryptocurrency regulatory relaxation is expected to follow.

After the approval of BTC and Ethercoin ETFs, some market participants speculate that Litecoin may follow suit. As a BTC forked coin and considered to have commodity attributes, its legitimacy is easier to be recognized by regulators. However, some experts believe that if there is not much market demand or a lack of active applications by industry participants, it still needs to be observed for such ETFs to truly land. In comparison, non-Proof-of-Work (PoW) mechanism tokens like Solana or $XRP are still facing more regulatory controversies, making it difficult to see similar ETF approvals in the short term.

On the other hand, the shift in attitude at the senior level of the SEC has also attracted market attention. Reports suggest that the SEC is expected to undergo personnel changes in 2025, and if the new leadership takes a more friendly stance towards cryptocurrencies, it may accelerate the approval process for other cryptocurrency ETFs. This has significant implications for the overall crypto ecosystem and investment market. Once a greater variety of ETFs are approved, it will further narrow the gap between traditional investors and the blockchain world.

Overall, the launch of the "BTC + Ethercoin" index ETF signifies a new stage of diversity and maturity in the US cryptocurrency market. Despite the short-term volatility, the loosening of regulations and the emergence of innovative financial products may drive a new round of capital inflows. The next key is to observe how these ETFs actually operate in the market and whether the acceptance of spot crypto ETFs by investors can further drive trading activity and stimulate more crypto applications.

[Disclaimer] The market is risky and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their specific circumstances. Investment based on this article is at your own risk.

The SEC approves BTC/ETH Index ETF, digital assets break through! Is institutional funding ready to enter? This article was first published in 'Crypto City'.