Hashdex, a crypto asset management firm has set its sights on providing an exchange-traded fund, (ETF) that directly tracks the price of Bitcoin and Ethereum. Hasdex has already filed the proposal via Form 19b-4 with the Securities and Exchange Commission (SEC).
Hashdex’s New ETF Proposal and Investment Strategy
The 19b-4 registration was posted by Nasdaq for the Hashdex Nasdaq Crypto Index US ETF.
According to the filing, if cleared to launch, Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc. will serve as co-custodians. Notably, Hasdex says besides Bitcoin and Ethereum, it will not make investments in any other crypto assets.
Additionally, the filing expressly stated that the trust would shun investing in crypto securities, stablecoins, or tokenized assets.
The move by Hashdex was long anticipated by ETF experts. Notably, Bloomberg ETF analyst James Seyffart believes it “makes a lot of sense” for Hashdex to explore this option given that the firm already has a crypto index ETF traded in Brazil.
Update: A dual Ethereum and #Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn’t be a surprise to anyone — makes a lot of sense.
Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM
— James Seyffart (@JSeyff) June 18, 2024
Interestingly, all Hashdex’s assets in Brazil are weighted as will the proposed ETF in the United States with weighted market capitalization. Furthermore, the filing gives provision for Hashdex to add other digital assets as they gain SEC approval. It is anticipated that the final deadline for SEC approval will be around the first week of March 2025.
Hashdex Strategic Move on Spot Ethereum ETF
Hashdex’s filing comes after the SEC approved spot Bitcoin ETFs in January this year, and last month gave the green light to eight spot Ethereum ETF products. The eight ETFs are now awaiting approval of the S-1 registration statement forms for the Ethereum products before they can start trading.
However, Hashdex pulled out of its proposal for a spot Ethereum ETF last month. The firm was not alone as the investment management firm managed by Cathie Wood, Ark Invest also dropped out of the spot Ethereum ETF race with 21Shares.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of Crypto-Vanguard’s content as such. Crypto-Vanguard does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.