Crypto News – Hashdex Requests SEC Approval for Bitcoin and Ethereum Spot ETF
Crypto News – Asset manager Hashdex has recently taken a bold step by proposing a combined spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). This ETF, named the Hashdex Nasdaq Crypto Index US ETF, aims to offer investors direct exposure to the two leading cryptocurrencies, marking a significant stride towards integrating crypto assets into traditional financial markets.
Details of Hashdex’s Spot Crypto ETF Filing
In its recent 19b-4 filing, Hashdex revealed that the ETF would solely hold Bitcoin and Ethereum, with cash reserves maintained only for covering expenses. The ETF will employ a passive investment strategy, aiming to mirror the Nasdaq Crypto US Settlement Price Index (NCIUSS), without attempting to outperform it. This straightforward approach is designed to attract both seasoned traders and newcomers by simplifying the investment process.
To ensure the security of its Bitcoin and Ethereum holdings, the ETF will use Coinbase and BitGo for custody. The filing also noted that as of May 27, 2024, the Index Constituents were weighted with BTC at 70.54% and ETH at 29.46%.
Alignment with Other Spot Ethereum ETF Issuers
Hashdex’s filing is in line with those of other potential spot Ethereum ETF issuers. Importantly, it states that neither the fund nor any affiliated parties will participate in Ethereum staking. The SEC now has 90 days to review the proposal, with a final decision expected by March 2025.
Market Reaction and Expert Opinions
James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on the filing, highlighting its market cap-weighted structure and potential for including other SEC-approved digital assets. “Hashdex already has a crypto index ETF that’s traded in Brazil. Currently, it holds 90% Bitcoin and Ethereum. Bringing something like this to the US makes complete sense as a future goal,” he noted.
Despite this innovative approach, some in the crypto community have expressed skepticism, arguing that combining Bitcoin with other digital assets in a single ETF doesn’t make sense. However, Seyffart defended the strategy, stating that the ETF’s structure “makes a ton of sense” for investors seeking diversified exposure to digital assets.
Future Outlook for Spot Crypto ETFs
If approved, the Hashdex Nasdaq Crypto Index US ETF would mark another milestone in the development of spot crypto funds. The crypto market is currently on edge, eagerly awaiting the approval of spot Ethereum ETFs. BeInCrypto reported that SEC Chairman Gary Gensler has hinted that these ETFs might receive approval over the summer, although he did not specify when they might start trading.
Meanwhile, Eric Balchunas, another ETF analyst at Bloomberg Intelligence, predicted that these funds could begin trading as early as July 2.
Frequently Asked Questions (FAQs)
What is the Hashdex Nasdaq Crypto Index US ETF?
The Hashdex Nasdaq Crypto Index US ETF is an exchange-traded fund (ETF) that provides direct exposure to Bitcoin (BTC) and Ethereum (ETH). It allows investors to invest in the two leading cryptocurrencies.
What is the investment strategy of the ETF?
This ETF employs a passive investment strategy to track the Nasdaq Crypto US Settlement Price Index (NCIUSS). This means it aims to replicate the performance of the index without attempting to outperform it.
What assets will the ETF hold?
The ETF’s assets will consist solely of Bitcoin and Ethereum. Cash will be held only to cover expenses. As of May 27, 2024, the index constituents’ weightings are 70.54% BTC and 29.46% ETH.
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