Enter the rise of Crypto ETFs? Hashdex filed for the first dual spot Bitcoin and Ethereum ETF. If approved, the product will begin trading in Q2 2025.
When the first crypto derivatives product went live in late 2017, there was excitement all through. This was short-lived after prices disintegrated in 2018, with some blaming institutions for fast-tracking the dump using the same derivatives listed on CME and cboe.
The crypto scene has since matured and developed, with the United States SEC approving Bitcoin and Ethereum futures and multiple spot Bitcoin ETFs.
As Bitcoin trends at near all-time highs, the Ethereum community expects the agency to greenlight a spot ETH ETF in the coming weeks. Thus far, the 194-b forms have been approved, and interested applicants are submitting their S-1 registration forms.
Analysts predict spot ETH ETFs will begin trading in two weeks or so.
(ETHUSDT)
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Hashdex Applies For A Hybrid Spot ETF
Taking advantage of this anticipation and confidence, Hashdex, an asset manager in Brazil, has filed with the United States SEC to launch a hybrid spot ETF combining Bitcoin and Ethereum.
If approved, the product will be listed on Nasdaq.
According to filing details, the proposed spot ETF would allocate BTC and ETF to reflect their current market caps of approximately 70% and 30%.
There it is…
19b-4 filing for *combined* spot btc & eth ETF.
Hashdex Nasdaq Crypto Index US ETF.https://t.co/4xw4ae8Mad
h/t @strack_ben pic.twitter.com/yK7azbyfxv
— Nate Geraci (@NateGeraci) June 18, 2024
Of note, the ETF will rely on price feeds from the Nasdaq Crypto US Settlement Price Index.
While the filing mentions possibly including other crypto assets in the future, it outlines a strict process.
According to Hashdex, any inclusion would require transitioning the investment strategy to maintain the current 70% and 30% split between BTC and ETH.
At the same time, new assets must be listed on an exchange approved and regulated by United States agencies.
If not, they must be the underlying asset for a derivative instrument regulated in the country. Thus far, only two exist: BTC and ETH.
Like most spot Bitcoin ETF issuers, Hashdex has chosen Coinbase and Bitgo as custodians for clients’ ETH and BTC holdings. For security, these accounts will be separated to ensure that the assets of individual shareholders are held securely and independently.
Will The United States SEC Say Yes?
Still, like all applications made by, say, Fidelity, BlackRock, and Bitwise, the filing must be studied before being approved.
The United States SEC has three months to respond. Before then, institutions and members of the public must submit their comments. The product could go live as early as March 2025 if it sails through this stage.
Even so, this is not the first time Hashdex has applied for spot ETF approval with the United States SEC. Earlier, they applied before withdrawing their spot ETH ETF application.
However, in Brazil, they offer an indexed crypto ETF with nine coins, including BTC, ETH, LTC, SOL, ad others.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
