- The cryptocurrency world is abuzz with news from Hashdex, a Brazil-based crypto asset management firm, as it has filed for a dual cryptocurrency ETF.
- This ETF will include both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization.
- Notably, if approved, Hashdex will be pioneering this combined ETF in the United States market.
Hashdex files for a groundbreaking dual crypto ETF combining Bitcoin and Ethereum, anticipating a competitive edge in the burgeoning crypto ETF market. Learn more about the potential impact of this innovative financial product.
Hashdex Files Combined Bitcoin and Ethereum ETFs
On June 18, Bloomberg analyst James Seyffart revealed that Hashdex has submitted a 19b-4 filing proposing a combined Bitcoin and Ethereum ETF. This filing follows the company’s decision to withdraw its earlier Spot Ethereum ETF application, a day after the SEC approved spot ETFs for Ethereum.
Hashdex’s new strategy indicates a shift towards more diverse crypto investment opportunities by bundling the two premier digital currencies into a single ETF. If approved by the U.S. Securities and Exchange Commission (SEC), this ETF would be a first-of-its-kind, setting a significant precedent in the crypto investment landscape.
The proposed ETF will be market-weighted, with Bitcoin comprising 70.54% and Ethereum 29.46% of the portfolio. This proportional distribution aligns with the market capitalizations of these cryptocurrencies, aiming to offer balanced exposure to both assets.
Hashdex’s Strategic Expansion
Hashdex already manages a diverse crypto index ETF in Brazil that holds a wide array of digital assets, with Bitcoin and Ethereum making up 90% of its holdings. This existing experience in handling multi-asset ETFs positions Hashdex well to expand its offerings in the U.S. market. Additionally, the new dual ETF could evolve to include other cryptocurrencies, provided they meet specific eligibility criteria.
Furthermore, Hashdex plans to use multiple custodians for their ETF’s digital assets. Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc are set to secure the Bitcoin and Ethereum holdings, ensuring stringent custodial protocols and enhancing investor confidence.
When Will Ethereum Spot ETFs Start Trading?
There’s a growing anticipation that Ethereum Spot ETFs could start trading within the next few weeks. Analysts, including ‘Crypto Capo’ and Bloomberg’s Eric Balchunas, foresee that the official market debut could happen by July 2024.
Despite the progression of 19b-4 form approvals for eight Spot ETH ETFs, the U.S. SEC is yet to greenlight S-1 registration statements, a necessary step before these ETFs can trade. SEC Chairman Gary Gensler has hinted that these S-1 approvals could be finalized by the end of this summer.
As for Hashdex’s combined Bitcoin and Ethereum ETF, the SEC’s decision deadline is expected by the first week of March 2025. This timeline creates a window for market analysts and potential investors to prepare for a groundbreaking addition to the available crypto investment products.
Conclusion
Hashdex’s application for a combined Bitcoin and Ethereum ETF marks a pivotal moment in the evolution of crypto investments. By introducing this innovative financial product, Hashdex could significantly impact market dynamics and investor strategies. As the SEC’s decision approaches, the crypto community remains watchful, anticipating how this move could redefine access and exposure to major digital assets. The strategic leverage from such a pioneering ETF could help mainstream dual exposure to Bitcoin and Ethereum, offering diversified risk and broadening investment opportunities in cryptocurrency markets.
