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The U.S. Securities and Exchange Commission (SEC) has approved the first dual Bitcoin-Ethereum exchange-traded funds (ETFs), allowing Nasdaq and Cboe BZX to list the Hashdex Nasdaq Crypto Index US ETF and Franklin Crypto Index ETF, expected to launch early next year. These funds will hold approximately 80% Bitcoin and 20% Ethereum, enhancing market integrity through surveillance-sharing agreements. This approval signals a more receptive environment for innovative crypto products, potentially paving the way for additional multi-asset ETFs in the future.
Bitcoin spot ETFs experienced record outflows of $671.9 million, with Grayscale Bitcoin Trust losing the most at $208.6 million, amid a price drop to under $93,000. This decline coincided with market volatility and profit-taking ahead of anticipated Federal Reserve rate cuts, which may impact future investor sentiment. Grayscale's holdings have plummeted by 55% in 2024, as investors shift to lower-fee alternatives, raising concerns about potential selloffs due to regulatory scrutiny.
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.
Smart investors are shifting their focus from Solana, which recently surged to $210.20, to Rexas Finance, a $0.15 coin with significant potential for the 2025 bull run. Rexas Finance stands out for its innovative approach to real-world asset tokenization, quick presale success, and projected 19,900% growth, making it an attractive alternative for those seeking explosive gains in the evolving crypto landscape.
Grayscale Investments has launched the Grayscale Chainlink Trust, allowing institutional investors to invest in Chainlink (LINK) through a regulated security. The Trust passively invests in LINK, tracking its market price via the CoinDesk Chainlink Price Index, and is listed as “GLNK” on OTC Markets. Following a significant purchase of LINK tokens by the World Liberty Financial Initiative, LINK's value surged 20%, boosting its market capitalization to $17 billion.
Grayscale has launched the Grayscale Lido DAO Trust and Grayscale Optimism Trust, targeting accredited investors seeking exposure to key Ethereum protocols. Lido enhances staking accessibility with $40 billion in total value locked, while Optimism, with $800 million in TVL, boosts Ethereum's scalability through its OP technology. Both trusts are now available for daily subscriptions, reflecting Grayscale's ongoing expansion in the cryptocurrency investment space.
Grayscale's research head, Zach Pandl, highlights Ethereum as the top cryptocurrency to buy, predicting it could outperform Bitcoin under the upcoming Trump administration, which aims to establish a clear regulatory framework for crypto. With potential price targets reaching $35,000 by 2025, Ethereum's extensive use cases and institutional interest are expected to drive significant growth, despite competition from Solana. Ethereum's established network and resilience further solidify its position as a safer investment in the evolving financial landscape.
The SEC plans to reject applications for spot Solana ETFs and pause new crypto ETF approvals, impacting several asset managers, including Grayscale Investments, which recently filed to convert its Solana Trust into a spot ETF. The agency's restrictive stance under Chair Gary Gensler has raised concerns about the classification of Solana and other cryptocurrencies as securities. With Gensler's departure imminent, there is speculation that a new SEC chair could change the outlook for Solana and XRP ETFs.
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