Hashdex Proposes new Spot Bitcoin and Ether Exchange-Traded Fund on Nasdaq
Summary:
Hashdex, in a recent proposal to the United States Securities and Exchange Commission (SEC), aims to introduce a new spot Bitcoin and Ether Exchange-Traded Fund (ETF) on the Nasdaq exchange. Bitcoin and Ether will be distributed according to their market capitalization. The proposed ETF will track daily market shifts rather than attempting to outperform the market. Coinbase and BitGo will manage the custody of the Bitcoin and Ether assets. Hashdex must still receive SEC approval for an S-1 application, with a final decision expected by March 2025.
In a recent filing with the United States Securities and Exchange Commission (SEC), Hashdex proposed the launch of a new spot Bitcoin and Ether Exchange-Traded Fund (ETF) on the Nasdaq exchange. The plan for the proposed ETF includes maintaining a balance between the two cryptocurrencies according to their respective market capitalizations, with Bitcoin (BTC) contributing to 70.54% and Ether(ETH) to 29.46% as of May 27. Focusing on tracking the daily shifts in the Nasdaq Crypto US Settlement Price Index, there will be no attempt to outperform it.
Analyst James Seyffart praised the multi-asset ETF plan, stating it to be a logical move. Sticking to investment in Bitcoin and Ether, any future inclusion of different cryptocurrency assets will lead to a shift in the Trust's investment strategy to the proportions dictated by the Index. The inclusion of new assets will be based on a specific set of criteria, including listing on an American regulated digital asset trading platform or serving as a base asset for a derivative instrument listed on an American-regulated derivatives platform.
Coinbase and BitGo, as custodians for the Bitcoin and Ether assets, will ensure separate accounts for individual stakeholders. Brazilian-based investment manager, Hashdex, initially applied for an ETH ETF but later withdrew the application, created an indexed crypto ETF comprising nine coins, predominantly Bitcoin and Ether. Their spot Bitcoin ETF traded in the US includes up to 5% Bitcoin futures contracts and purchases the spot asset on the CME.
Hashdex still needs to file and receive approval for an S-1 application from the SEC. The SEC's window of response is 90 days starting from the submission of the 19-b4, during which it will accept public and financial institutions' feedback on the proposal. James Seyffart expects the agency's final decision on the fund by March 2025 at the latest.
Published At
6/18/2024 9:27:06 PM
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