The US SEC has approved the first combined Bitcoin and Ethereum ETFs from Hashdex and Franklin Templeton, featuring an 80/20 split. This milestone comes amid significant outflows from existing Bitcoin and Ethereum ETFs, totaling $671 million and $60 million, respectively, as the market faces a downturn. The new ETFs are set to launch in January 2024, with expectations of strong demand for diversified crypto investment products.
Bitcoin ETFs experienced a record single-day outflow of $680 million on December 19, ending a 15-day inflow streak. Ethereum ETFs also faced $60 million in outflows, breaking an 18-day positive trend. Fidelity and Grayscale funds led the outflows, while BlackRock's ETFs remained stable.
Bitcoin experienced a significant price drop, falling from over $105,000 to below $96,000, following a record $671.9 million net outflow from Bitcoin ETFs on December 19. This reaction was triggered by Fed Chair Powell's comments on interest rates and inflation, leading to heightened investor fear. Ethereum ETFs also faced outflows, with $60.5 million withdrawn, contributing to a 9% decline in ETH's price.
The SEC has approved the first hybrid Bitcoin-Ethereum ETFs, allowing Nasdaq and Cboe BZX to list the Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF, respectively. Each fund will hold approximately 80% Bitcoin and 20% Ethereum based on market capitalizations. Grayscale has also filed to convert its Solana Trust into an ETF, aiming to enhance investor access.
The SEC has approved Hashdex and Franklin Templeton's Bitcoin and Ether index ETFs, allowing them to trade on Nasdaq and Cboe BZX Exchange, respectively. Both ETFs will hold spot Bitcoin and Ether, meeting regulatory criteria to protect investors. This approval may encourage other firms, like BlackRock, to launch similar products in the growing crypto market.
As Wall Street's influence over Bitcoin increases, concerns about the cryptocurrency's decentralized nature intensify. BlackRock's recent video highlighted Bitcoin's 21 million supply cap but included a disclaimer suggesting potential changes, raising fears of manipulation. While Bitcoin ETFs may enhance accessibility and attract institutional capital, they also pose risks of centralization, challenging the community to uphold Bitcoin's core principles amidst growing financialization.
Mo Shaikh has stepped down as CEO of Aptos Labs to "start a new chapter," with co-founder Avery Ching taking over the role. Shaikh, who co-founded the layer-1 blockchain in 2021 and helped raise $400 million, will remain as a strategic adviser while expressing confidence in the team's future. Aptos aims for significant technical innovation and ecosystem expansion in 2025 under Ching's leadership.
A recent crypto market sell-off triggered $1 billion in leveraged liquidations, primarily affecting long positions. Bitcoin, despite dropping below $96,000, has gained 130% this year, while the total crypto market cap fell 9.5% to $3.4 trillion. The Fed's hawkish stance following a rate cut decision has contributed to market volatility, with many traders viewing the pullback as a healthy correction.
BlackRock's new Bitcoin advertisement has sparked backlash among Bitcoin enthusiasts due to a disclaimer suggesting the potential for changes to Bitcoin's fixed supply of 21 million tokens. Critics, including prominent figures in the crypto community, argue that such statements undermine the cryptocurrency's core principles and express concerns over traditional finance's influence on Bitcoin. Despite the uproar, experts note that any change to the supply cap would require broad consensus among Bitcoin miners, which is deemed unlikely.
Dubai-based Allo has secured a $100 million Bitcoin-backed credit facility from a consortium of lenders, including Greengage and a U.S. financial institution. Specializing in real-world asset tokenization, Allo has facilitated $2.2 billion in tokenized assets and raised $2.75 million in funding to date. The market for tokenized assets has surged in 2024, with total value increasing from $8.3 billion to nearly $13.9 billion, driven by institutional interest and advancements in blockchain solutions.
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