The U.S. Securities and Exchange Commission granted SEC approval for new crypto index funds that hold spot Bitcoin (BTC) and spot Ethereum (ETH). This step drew attention from investors who follow emerging asset classes and want diversification in crypto. Hashdex and Franklin Templeton now have permission to list their crypto index ETFs on the Nasdaq and Cboe BZX Exchange. Each crypto index fund will use a market cap-weighted strategy, which aims for about 80% BTC and 20% ETH at first. Observers expect these funds to start trading in January, though the timing depends on market conditions and final exchange arrangements.
People ask, “How does SEC approval of spot Bitcoin and Ethereum combo ETFs affect crypto investors?” This decision gives crypto enthusiasts access to a simple product that holds two leading cryptocurrencies in one ETF. A single investment vehicle that combines BTC and ETH can reduce the hassle of buying both assets separately. Some investors see these ETFs as a secure way to hold digital assets without managing private keys. Others view them as an important milestone for mainstream acceptance of cryptocurrencies. Hashdex and Franklin Templeton join well-known asset managers that launched spot Bitcoin ETFs, such as BlackRock, Ark Invest, Grayscale, VanEck, and others. Analysts believe more crypto index funds will follow. Many think the demand for these products will grow because more financial advisors will feel comfortable investing in regulated offerings.
These new ETFs reflect the ongoing debate about spot ETFs versus futures-based ETF products. Some wonder, “What is the difference between spot and futures-based crypto ETFs?” A spot ETF directly holds the cryptocurrency, while a futures-based ETF tracks futures contracts. Critics argue that futures-based products can stray from the actual price of Bitcoin or Ethereum due to contract rollover costs. Spot-based funds aim to match the price of the underlying assets more closely. They are also simpler to understand because they do not rely on derivatives. Since the SEC has allowed several spot Bitcoin ETFs, many view this shift as further proof of crypto’s entry into the mainstream investing world.
Advisors often prefer diversification in crypto when dealing with emerging digital assets. Because these ETFs combine spot Bitcoin and spot Ethereum, they offer immediate exposure to two cryptocurrencies that dominate the market cap rankings. The index weighting methodology uses a market cap-weighted approach, so Bitcoin’s higher value grants BTC a larger share than ETH. The approximate 80/20 split may change as prices move. Some investors expect that a stable ratio of BTC to ETH may appeal to those who want both assets in a single product. They also hope for growth if these assets experience another price rise.
Hashdex plans to list its Hashdex Nasdaq Crypto Index US ETF under the ticker NCIQ. Franklin Templeton’s fund will trade under the ticker EZPZ. Each fund has the ability to add other cryptocurrencies, such as Avalanche (AVAX), Chainlink (LINK), or Litecoin (LTC), after regulatory approval. Hashdex’s amended S-1 registration statement identifies AVAX, LINK, and LTC as eligible assets. Franklin Templeton has not named specific altcoins, but it holds the option to expand. People ask, “Will Hashdex and Franklin Templeton add altcoins like AVAX, LINK, or LTC to their ETFs?” That depends on whether the SEC greenlights each asset and whether there is investor demand for those coins. Both managers filed S-1 registration statements and used 19b-4 forms in their proposals. They faced delays, but Thursday’s accelerated approval cleared the path to market.
Each crypto index fund relies on trusted custodians. Hashdex named BitGo, Coinbase, Fidelity, and Gemini as core custodians for NCIQ. Franklin Templeton picked BitGo and Coinbase to secure assets for EZPZ. Observers ask, “Which crypto custodians are used by Hashdex and Franklin Templeton’s crypto index ETFs?” The custodian lineup includes well-known firms that already manage large amounts of digital assets. These companies store private keys and provide insurance features in case of theft. The presence of established custodians adds a layer of comfort for regulators and traditional investors.
Past launches of other spot Bitcoin ETFs, including those by BlackRock, Fidelity, Ark Invest, Bitwise, and VanEck, saw strong net inflows from investors. The largest and most famous spot Bitcoin ETFs now hold billions in assets under management (AUM), thanks to a surge of interest. Many call the combined spot Bitcoin products one of the most successful ETF rollouts in history. They saw over $36 billion in net inflows and around $110 billion in AUM, driven by Bitcoin’s price increases. Spot Ethereum ETFs, on the other hand, have fewer assets, though they still gathered about $2.4 billion in total net inflows since their launch. Those who support Ethereum say it has room for further growth if the crypto market gains more recognition.
Hashdex started a spot Bitcoin ETF called DEFI, which has seen modest inflows so far. It no longer plans to launch a spot Ethereum ETF on its own, but it remains open to more crypto index fund ideas. Franklin Templeton has spot Bitcoin and spot Ethereum products that attracted varying amounts of investor capital. Its spot Bitcoin ETF, known as EZBC, gained over $400 million in net inflows, while its spot Ethereum product, EZET, saw about $40 million. While these numbers lag behind the top spot ETFs, they show real investor demand for regulated crypto offerings. Readers sometimes ask, “When will BlackRock or Grayscale launch a spot Bitcoin and Ethereum combo ETF?” Many analysts predict more major firms will seek approval for similar products. Momentum in the crypto ETF market remains strong, and the list of asset managers wanting in on the trend keeps growing.
Crypto fans also talk about the possibility of other digital assets receiving approval as spot ETFs. Observers mention Solana (SOL) and XRP as tokens that might appear in future ETF proposals under a pro-crypto administration. Some connect this speculation with the policies of Donald Trump, who might support more crypto-friendly regulators. Others believe tokens like Litecoin and Hedera (HBAR) have a better chance at near-term approval, since the SEC has not labeled them securities. The question, “What is the impact of regulatory approval on the future of Solana and XRP ETFs in the U.S.?” remains. Bloomberg ETF analyst James Seyffart thinks altcoins not classified as securities have an easier path to get a green light. Still, no official timeline exists, and many wonder if enough investor demand will justify new funds for these assets.
Market watchers foresee meaningful demand for these newly approved combo ETFs. They consider the risks and benefits of investing in newly approved crypto index ETFs. Critics note that crypto remains volatile, so prices can change without warning. The ETF structure does not remove risk, but it can make crypto investing more accessible. Some like that these funds trade on major exchanges and follow familiar rules. Others prefer holding digital assets directly. Yet many see these regulated products as a huge step forward. Investors must weigh the advantages of a single product that offers exposure to spot Bitcoin and spot Ethereum against the costs and potential volatility. Traditional advisors, who often hesitate to suggest unregulated products, are more comfortable with SEC-approved vehicles.
Some experts think the approval might also signal that regulators have grown more open to new approaches in the digital asset space. Each manager must still update the SEC on any changes to portfolio composition, including the addition of altcoins. This approach helps ensure transparency. Observers have asked, “Will Hashdex and Franklin Templeton add altcoins like AVAX, LINK, or LTC to their ETFs?” The managers have only mentioned these as possibilities. They say official inclusion depends on the assets meeting strict requirements, from liquidity levels to regulatory acceptance. They will also consider real investor demand and price stability.
Others focus on how market cap-weighting influences Bitcoin and Ethereum allocations. The method tries to reflect each token’s share of the total crypto market. BTC often holds around half or more of the crypto market’s value, so it takes a bigger spot in these funds. ETH’s share is significant too, but smaller. Another question arises about how rebalancing might work if Ethereum grows in price, or if Bitcoin drops. Either way, the ratio in the index will shift over time. That appeals to many who do not want to track daily price changes on their own.
Supporters say these crypto index funds are more than a novelty. They reflect a new era in which regulators, traders, and big institutions treat crypto as an important market. Investors who never considered digital assets may now find them more approachable. They do not need to own private wallets, face the complexity of crypto addresses, or sign up for cryptocurrency exchanges. Instead, they can buy shares in these ETFs within a standard brokerage account. The combination of BTC and ETH also reduces the need to pick a single cryptocurrency. This answers a common question: “Will this product simplify crypto investing?” Many believe it does, though it does not eliminate risk.
In the future, more people may ask, “Is this the best way to diversify in crypto?” Some argue that these funds cover only two assets in a diverse digital landscape that features Solana, XRP, Avalanche, Litecoin, Chainlink, and Hedera. Others prefer to see these funds as a starting point. They suspect that, once the SEC is comfortable with a two-coin index, it will consider more coins for inclusion in crypto index ETFs. That scenario hinges on regulatory approval, investor interest, and each coin’s legal status. Observers note the lack of official stances from the SEC on some projects.
These combo ETFs from Hashdex and Franklin Templeton could attract interest from various investors, from those already in the crypto space to newcomers who want a simple way to gain exposure. This format might bring in more net inflows and raise overall AUM in the crypto ETF world. If demand remains high, the crypto index fund market may keep expanding. Firms like BlackRock or Grayscale could soon try to create similar combo ETFs or even launch new ones that include other tokens. The potential for more altcoin approvals might make the next few months interesting. Many watchers see this as another big moment for digital assets, driven by the shift in the SEC’s stance, along with changes in how major asset managers approach crypto.
