Hashdex Retracts Its Application for Spot Ether ETF from the SEC
Summary:
Hashdex, the investment manager, has withdrawn its application for launching an Ether Exchange-Traded Fund (ETF), according to documentation submitted to the United States Securities and Exchange Commission (SEC). The withdrawal occurred just a day after eight similar products were approved by the SEC, with no reason provided for the retraction, nor any indication if Hashdex intends to resubmit its proposal. The firm's initial Ether ETF strategy combined spot Ether holdings with Ether futures contracts to reduce potential pricing manipulation. Hashdex was among the issuers of Spot Bitcoin ETFs approved in January.
Fund manager Hashdex has withdrawn its proposal for an Ether exchange-traded fund (ETF), according to documentation submitted to the United States Securities and Exchange Commission (SEC). Reports dating May 28 indicate Hashdex's withdrawal of its proposed rule amendment that would have enabled the launch of its Hashdex Nasdaq Ethereum ETF. This retraction occurred on May 24, just a day following the approval of eight analogous financial products by the financial regulator. No insights were given as to why this happened or if Hashdex plans to reapply. Communication attempts with Hashdex have generated no immediate feedback. Hashdex's withdrawal notice. Source: U.S. SEC On May 23, the SEC granted permission to the 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. This paves the way for spot Ether ETFs to be listed and traded on their respective exchanges, with anticipations of them going live in June. Different from other proposals, Hashdex's Ether ETF application combines spot Ether possessions with Ether futures contracts within the same product to reducing potential manipulation risk. Other applicants like Fidelity, ARK 21Shares, and Franklin Templeton have centered on spot-only Ether ETFs and late amendments to their submissions, removing Ether (ETH) staking support following SEC feedback. Additionally, Hashdex's ETF aimed to reflect daily variations in Nasdaq Ether Reference Price tied to market manipulation regulatory concerns. Per its initial submission in September 2023: "Rather than holding 100% spot Ether, which could be more susceptible to price manipulation in the spot market, the Fund will hold a blend of Spot Ether, Ether Futures Contracts, and cash." Hashdex was among the issuers of spot Bitcoin ETFs given approval in January. Much like its Bitcoin fund, Hashdex's method differed from other asset managers. For example, Hashdex's Bitcoin ETF did not rely on the Coinbase surveillance sharing agreement but preferred to source spot BTC from physical exchanges within the CME market. Magazine: Godzilla vs. Kong: SEC confronts robust legal challenges from the crypto industry.
Published At
5/29/2024 8:22:06 PM
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