Hashdex Applies for Bitcoin ETF with a Unique Strategy!

  • The company has submitted an application for a Bitcoin futures ETF that holds spot Bitcoin to the United States Securities and Exchange Commission (SEC).
  • ETFs are investment funds traded on a stock market, and their values are derived from a basket of underlying assets such as stocks, bonds, commodities, and other financial instruments.
  • Hashdex’s approach is different from recent applications because it will not rely on the Coinbase custody sharing agreement and will prefer to buy spot Bitcoin from physical exchanges in the CME market.

Crypto asset management company Hashdex has filed an application with the SEC to create a Bitcoin futures ETF that invests in spot Bitcoin.

Hashdex Files Bitcoin ETF Application

Crypto asset management company Hashdex has entered the competition for a spot Bitcoin exchange-traded fund (ETF) in the United States. The company has submitted an application for a Bitcoin futures ETF that holds spot Bitcoin to the United States Securities and Exchange Commission (SEC).

ETFs are investment funds traded on a stock market, and their values are derived from a basket of underlying assets such as stocks, bonds, commodities, and other financial instruments. Similarly, Bitcoin ETFs track the value of BTC and trade on traditional exchanges rather than crypto exchanges.

Hashdex’s approach is different from recent applications because it will not rely on the Coinbase custody sharing agreement and will prefer to buy spot Bitcoin from physical exchanges in the CME market. According to Hashdex’s 19b-4 application to the SEC, the company intends to add spot Bitcoin to its Bitcoin futures ETF and change its name (ticker) to Hashdex Bitcoin ETF.

Some experts have responded to Hashdex’s unique Bitcoin ETF application. Bloomberg analyst James Seyffart noted that this strategy only involves related position trades and prefers to convert futures contracts into equivalent spot exposure rather than cash purchases directly from exchanges.

Seyffart Predicts SEC Approval

Taking into account the pressure resulting from the Grayscale case, Ethereum futures contract applications, and BlackRock’s adoption of the Coinbase custody sharing agreement, Seyffart predicts that SEC approval is more likely to happen.

Other experts, including Nate Geraci, President of The ETF Store, investor Alistair Milne, and financial attorney Scott Johnsson, have also responded to Hashdex’s unique Bitcoin ETF application. They believe that this application could alleviate the SEC’s concerns about Bitcoin market manipulation and liquidity.

The SEC and its Chairman Gary Gensler have not yet commented on spot Bitcoin ETF applications, the increasing arrival of Ethereum ETFs, and the potential approval of a spot Bitcoin ETF within this year.

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