Nasdaq Submits Application for Ethereum ETF in Collaboration with Hashdex: Pioneering a New Approach to Cryptocurrency Investment
Summary:
Nasdaq has applied to the SEC to list an Ethereum ETF offered by Hashdex. The Hashdex Nasdaq Ethereum ETF combines spot ether holdings and futures contracts to pioneer a new approach to cryptocurrency investment. The fund aims to mirror the daily fluctuations in the Nasdaq Ether Reference Price and mitigate potential price manipulation. Hashdex has taken a unique approach by acquiring spot Bitcoin from physical exchanges within the CME market. The SEC is yet to determine the status of the ETF applications.
The Nasdaq stock exchange has officially applied to the Securities and Exchange Commission (SEC) to list an Ethereum Exchange-Traded Fund (ETF) created by Hashdex, an asset management firm. This unique ETF combines spot ether holdings with futures contracts, offering a fresh perspective on cryptocurrency investment within the current regulatory framework. The Hashdex Nasdaq Ethereum ETF, known as the first '33 Act Ethereum futures filing, will be overseen by Toroso Investments, an organization registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association. The surge in cryptocurrency ETF applications has sparked a debate on the inclusion of futures contracts versus spot assets, with fund managers now exploring a middle-ground approach within the regulatory landscape. The primary objective of the Hashdex fund is to ensure its shares reflect the daily fluctuations in the Nasdaq Ether Reference Price. To achieve this, the fund plans to allocate its assets to investments in ether, ether futures contracts from the CME, as well as cash and cash equivalents. The Hashdex fund aims to mitigate concerns of potential price manipulation by reducing its reliance on the spot market, incorporating Ether Futures Contracts and cash in its holdings. It is noteworthy that Hashdex has taken a different approach in the competition for a spot Bitcoin ETF in the US, choosing not to rely on the Coinbase surveillance sharing agreement and instead acquiring spot Bitcoin from physical exchanges within the CME market. Other firms, including Ark Invest, 21Shares, and VanEck, have also submitted applications to the SEC for a spot ether ETF, which has yet to receive a determination from the regulatory body.
Published At
9/13/2023 8:13:13 AM
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