The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the evolution of crypto-based financial products by approving spot bitcoin and ether exchange-traded funds (ETFs) from Hashdex and Franklin Templeton. This marks a pivotal moment for institutional and retail investors seeking diversified exposure to the two largest cryptocurrencies through regulated investment vehicles.
Regulatory Green Light for Dual-Crypto ETFs
On December 19, the SEC approved the Hashdex Nasdaq Crypto Index US ETF, which will trade on the Nasdaq stock market. Simultaneously, the regulator cleared the Franklin Crypto Index ETF, set to be listed on the Cboe BZX Exchange. Both funds are structured as index-based ETFs holding spot bitcoin (BTC) and spot ether (ETH), offering investors direct exposure to the underlying digital assets.
The Franklin Crypto Index ETF will track the Institutional Digital Assets Index, a benchmark designed to reflect the performance of major digital assets like BTC and ETH. In contrast, the Hashdex offering will follow the Nasdaq Crypto US Settlement Price Index, focusing on U.S.-dollar settled pricing data for both cryptocurrencies.
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These approvals were granted based on revised filings that align closely with previously approved spot bitcoin and ether ETF proposals. The SEC noted that both applications meet requirements under the Securities Exchange Act, including provisions for market surveillance, anti-fraud measures, and investor protection protocols—key factors in gaining regulatory confidence.
Strategic Filing Timelines and Market Context
Franklin Templeton’s updated filing was approved on an “accelerated basis” as of December 18, signaling strong regulatory preparedness. The firm initially filed its application in August but faced a delay when the SEC postponed its decision on November 20.
Similarly, Hashdex submitted its second amended S-1 registration statement on November 25, following an earlier revision in October after the SEC requested additional time to evaluate the proposal. These iterative submissions reflect the rigorous compliance standards required for crypto ETF approvals.
Notably, these developments occur amid growing momentum in the crypto ETF space. While Hashdex and Franklin are now approved, they join a broader wave of institutional interest. For instance, on November 26, NYSE Arca filed to list the Bitwise Bitcoin and Ether Equal Weight Miners & Stakers ETF—a product combining exposure to both BTC and ETH miners and staking operations.
Additionally, in October, NYSE Arca expressed interest in listing Grayscale’s Cryptocurrency Index ETF, which aims to provide diversified exposure to a basket of spot cryptocurrencies beyond just BTC and ETH. The SEC is currently reviewing that proposal, indicating potential future expansion into broader crypto index products.
Industry Reaction: Anticipating Wider Market Impact
Nate Geraci, president of The ETF Store—a firm specializing in ETF investment strategies—commented on social media following the announcement:
“Will BlackRock or others try to piggyback and launch similar ETFs? That’ll be interesting to watch.”
He added:
“Regardless, demand for these products is likely to be strong. Advisors love diversification—especially in emerging asset classes like crypto.”
Geraci’s insights highlight a key driver behind these new ETFs: diversified crypto access. Unlike single-asset ETFs such as those focused solely on bitcoin, these dual-asset funds allow investors to gain balanced exposure to both BTC and ETH—the two dominant players in the cryptocurrency ecosystem—within one tradable security.
This structure reduces concentration risk while maintaining exposure to innovation-driven growth in decentralized finance (DeFi), smart contracts, and blockchain infrastructure.
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Why Diversified Crypto ETFs Matter
The approval of multi-asset crypto ETFs represents more than just regulatory progress—it signals maturation in the digital asset investment landscape. Here's why this matters:
- Institutional Adoption: Regulated ETFs lower barriers for pension funds, endowments, and wealth managers who require compliant vehicles.
- Risk Mitigation: Holding both BTC and ETH provides balance between store-of-value (BTC) and programmable blockchain utility (ETH).
- Market Efficiency: ETFs offer intraday trading, transparency, and lower fees compared to direct custody solutions.
- Regulatory Precedent: Each approval strengthens the framework for future products, including broader crypto index funds or even DeFi-based ETFs.
Core Keywords Integration
Throughout this evolving landscape, several core keywords naturally emerge:
- Bitcoin ETF
- Ethereum ETF
- crypto index fund
- spot cryptocurrency ETF
- SEC approval
- diversified crypto exposure
- institutional crypto investment
- regulated digital asset fund
These terms reflect both user search intent and the thematic focus of ongoing developments in crypto finance.
Frequently Asked Questions (FAQ)
Q: What is a spot cryptocurrency ETF?
A: A spot cryptocurrency ETF directly holds the actual digital asset—such as bitcoin or ether—rather than futures contracts or derivatives. This provides investors with true ownership exposure to price movements of the underlying asset.
Q: How do Hashdex and Franklin’s ETFs differ from single-asset Bitcoin ETFs?
A: Unlike single-asset funds that focus only on BTC or ETH, these are index-based ETFs holding both cryptocurrencies. They offer built-in diversification within the digital asset class, reducing reliance on any single coin’s performance.
Q: Are these ETFs already trading?
A: The SEC has approved the regulatory filings, but launch dates depend on final preparations by the issuers and exchanges. Investors should monitor official announcements from Nasdaq and Cboe BZX for listing details.
Q: Why does SEC approval matter for crypto investors?
A: SEC approval ensures compliance with investor protection laws, market transparency, and anti-manipulation safeguards. It legitimizes crypto as an investable asset class and encourages wider participation from traditional finance.
Q: Could other firms launch similar products now?
A: Yes. As Nate Geraci suggested, major asset managers like BlackRock or Fidelity may explore similar filings. Regulatory precedent lowers entry barriers, potentially accelerating innovation in crypto-linked financial products.
Q: Is Grayscale’s crypto index ETF also approved?
A: Not yet. While NYSE Arca has filed to list Grayscale’s Cryptocurrency Index ETF—which would hold a broader basket of digital assets—the SEC is still reviewing the application. No decision has been announced.
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Final Outlook
The SEC’s dual approval of Hashdex and Franklin Templeton’s spot BTC-ETH ETFs underscores a clear shift toward mainstream acceptance of digital assets. As more diversified, regulated investment vehicles enter the market, they pave the way for broader adoption across wealth management platforms and retirement accounts.
With increasing institutional interest, evolving regulatory clarity, and growing demand for diversified crypto exposure, 2025 could become a defining year for multi-asset digital investment products. Investors should remain informed, evaluate risk profiles carefully, and consider how these new tools align with long-term financial goals.