SEC Approves First Hybrid Bitcoin and Ethereum Cryptocurrency Index ETFs

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After multiple delays since June of this year, the U.S. Securities and Exchange Commission (SEC) has finally approved the first-ever spot exchange-traded funds (ETFs) that combine both Bitcoin (BTC) and Ethereum (ETH).

Key Details of the Approved ETFs

According to regulatory filings published on Thursday:

These cryptocurrency index ETFs will allocate holdings between Bitcoin and Ethereum based on their free-float market capitalization. Bloomberg senior ETF analyst Eric Balchunas estimates the initial allocation will be approximately 80% BTC and 20% ETH, reflecting current market valuations, with a projected launch in January 2025.

"The spot bitcoin/ether combo ETFs have been approved by SEC (as predicted). Launch likely in January. They’re mkt cap weight so 80/20 btc/eth approx. Notable that Hashdex & Frankie are first. Good for them."
— Eric Balchunas (@EricBalchunas)

SEC’s Approval Criteria

A critical factor in the SEC’s approval process was the implementation of surveillance-sharing agreements. These protocols enable exchanges to share trading data and market intelligence, helping detect and prevent cross-market fraud or manipulation.

Market Reaction and Future Outlook

Nate Geraci, President of ETF Store, noted on X (formerly Twitter) that financial advisors favor diversified exposure, especially in emerging asset classes like cryptocurrencies:
"I expect meaningful demand for these products." He also highlighted the likelihood of other ETF issuers introducing similar hybrid crypto offerings.

👉 Explore crypto investment strategies to align with these new ETF opportunities.


FAQ Section

1. What makes these ETFs unique?

These are the first SEC-approved ETFs to hold both Bitcoin and Ethereum, offering diversified crypto exposure in a single fund.

2. How are the BTC/ETH allocations determined?

Allocations are based on free-float market capitalization, currently projected at 80% BTC and 20% ETH.

3. When will these ETFs launch?

Expected launch is January 2025, pending final exchange approvals.

👉 Stay updated on ETF developments for actionable insights.


Keywords: Bitcoin ETF, Ethereum ETF, cryptocurrency index, SEC approval, hybrid crypto ETFs, Hashdex, Franklin Templeton, surveillance-sharing


Why This Matters

The approval signals growing institutional acceptance of cryptocurrencies and provides investors with a regulated, diversified gateway into digital assets. Analysts anticipate further innovation in crypto-linked financial products.

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