Crypto ETF milestone: SEC clears dual Bitcoin-Ethereum ETF

• Dual Bitcoin and Ethereum ETF gain SEC approval.
• The crypto market faces $1 billion in liquidations amid ETF approvals and market volatility.

The United States Securities and Exchange Commission (SEC) has officially approved the first-ever dual Bitcoin [BTC] and Ethereum [ETH] exchange-traded fund (ETF).

This groundbreaking move led by Hashdex and Franklin Templeton offers institutional investors a seamless way to access the two largest cryptocurrencies through spot-based investment options.

The benefit it will offer to the crypto space

By merging BTC and ETH into a single ETF product, this approval signals a major step forward in expanding cryptocurrency adoption and simplifying institutional exposure to the digital asset market.

Franklin Templeton’s recent ETF filing, submitted on 18th December, achieved expedited approval by adhering to well-established commodity-based trust standards.

The SEC’s swift decision was supported by rule changes proposed by Nasdaq and Cboe BZX, paving the way for the listing and trading of these innovative funds.

Execs weighing in…

Remarking on the same, popular artist Chad Steingraber noted, 

“Hashdex Crypto Index ETF that just got approved by the SEC. At first it will only include BTC and ETH, but will expand to other assets over time… INCLUDING XRP!” 

For context, Hashdex initially submitted its ETF filing in June, facing two delays from the SEC due to ongoing regulatory considerations.

Hence, industry experts believe that the recent approvals may have been influenced by anticipated leadership transitions in Washington, potentially signaling a shift in the regulatory landscape.

Providing further insights on the matter, Bloomberg’s senior ETF analyst Eric Balchunas stated, 

“Launch likely in January. They’re mkt cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them.”

Why has the crypto market collapsed?

Strangely, the regulatory approval arrived amidst heightened market volatility. The latest data from CoinGlass revealed over $1 billion in crypto liquidations within 24 hours.

Following this, Bitcoin witnessed a sharp drop of over 8%. It plummeted from yesterday’s high of $105,000 to a current trading price of $94,397.91. This reflected a 7.91% decline as per CoinMarketCap.

Ethereum, following suit, saw a 14.14% decrease. At press time it was valued at $3,182. Meanwhile, Solana [SOL] faced a comparable 13.53% drop, trading at $182.3.

These steep declines underline the concerning situation gripping the cryptocurrency market.

Are Litecoin and Hedera ETFs next in line?

With the milestone approval secured, the buzz is now all about which coin will claim the approval next. AMBCrypto recently reported that it might be Litecoin (LTC) and Hedera (HBAR).

Balchunas and James Seyffart suggested that these ETFs might debut ahead of Solana and Ripple’s XRP ETFs. 

However, while institutional demand for LTC remains modest, its status as a Bitcoin fork and potential commodity under U.S. regulations could position it favorably in the evolving ETF landscape.