After several extensive reviews since June of this year, the Securities and Exchange Commission (SEC) has finally approved the first spot exchange-traded funds that combine Bitcoin and Ethereum.

The agency has authorized Nasdaq to list the Hashdex Nasdaq Crypto Index US ETF and Cboe BZX to list the Franklin Crypto Index ETF, according to the agency. Deposit Released Thursday.

“The proportion of bitcoin and ether each institution will hold will depend on the free market value of the float,” the filing said.

Bloomberg Chief Funds Analyst Eric Balchunas expected The funds will launch in January with an approximate split of 80% Bitcoin and 20% Ethereum, reflecting the current market cap.

Funds must comply with ongoing listing requirements and maintain transparency regarding portfolio holdings and pricing. Both exchanges will monitor compliance and can initiate delisting procedures if the requirements are not met.

Trading in ETF shares will be subject to the current securities rules of both exchanges. The funds will post intraday indicative values ​​every 15 seconds during regular trading hours.

The approval comes as significant activity continues in existing cryptocurrency ETF markets, with current Bitcoin products showing BlackRock's IBIT dominating $56 billion in assets under management (AUM), with a volume of over $4.4 billion.

BlackRock's ETF is followed by Fidelity (FBTC) and Grayscale (GBTC), both of which stand closely behind with about $20 billion in assets under management each.

present Data Coinglass revealed significant outflows via major funds on December 19, with net negative moves of about $671 million.

Get comfortable

In August, the Securities and Exchange Commission said that A Longer review period ETFs were required on Wednesday to provide “adequate time to consider the proposed rule change and the issues raised therein.”

Franklin Templeton's portfolio received "accelerated approval" based on its similarity to previously approved cryptocurrency exchange-traded products (ETPs). The SEC also noted that it continued to exhibit high market correlations with Chicago Mercantile Exchange futures.

One of the key factors the SEC took into consideration when making this request was surveillance participation. This setup is an agreement between exchanges to share trading data and basic market information to help detect and prevent fraud and manipulation across connected markets.

The Bitcoin-Ethereum hybrid ETF demonstrated this through a “regulated market with significant volume,” the SEC said, demonstrating how this new financial product aligns with commodity-based trust standards.

The approval indicates that the SEC is comfortable with a dual-asset framework as long as it fits its criteria and is sufficiently linked to existing markets. Previously, spot cryptocurrency ETFs were limited to exposure to single assets.

“Advisers like diversification, especially in an emerging asset class like cryptocurrencies.” He said Nate Geraci, president of The ETF Shop, discusses approval in an About X thread. “I expect there will be significant demand for these products.”

Geraci also noted that it will be “interesting” to see if other crypto ETF issuers follow suit and launch similar products.

The Securities and Exchange Commission did not immediately respond to a request for comment.

Modified by Sebastian Sinclair