- Hashdex, a well-established crypto asset management firm, has recently submitted its S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for its Hashdex Nasdaq Crypto Index US ETF.
- This ETF aims to be the first index-based crypto ETF in the U.S. that will track various digital assets within the Nasdaq Crypto US Settlement Price Index.
- According to Bloomberg ETF Analyst James Seyffart, the fund can expand its holdings to include other cryptocurrencies once it secures approval from the SEC.
Hashdex’s new filing seeks to revolutionize crypto investments by introducing the first index-based crypto ETF in the U.S., poised to track digital assets like Bitcoin and Ethereum.
Hashdex’s Crypto ETF Awaits SEC Approval
Hashdex’s S-1 registration statement details the company’s intention to employ a sample replication strategy for its ETF, focusing initially on Bitcoin (BTC) and Ethereum (ETH). This means maintaining these assets within specific proportions to ensure the fund accurately mirrors the Nasdaq Crypto US Settlement Price Index. To introduce additional assets into the ETF, Hashdex will require a rule change under Rule 19b-4 of the Exchange Act, subject to SEC approval.
Potential Expansion of ETF Holdings
James Seyffart noted in a recent post that Hashdex’s fund is currently set to combine Bitcoin and Ethereum. However, future expansions might include other cryptocurrencies such as Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL), pending regulatory approval. This strategy allows flexibility for the ETF to adapt and grow in alignment with the evolving digital asset market.
Hashdex’s Unique Approach Towards Crypto ETFs
The weighting of Hashdex’s ETF will be determined by the free float market caps of the included crypto assets. Presently, the proposed weighting is 76.3% for Bitcoin and 23.7% for Ethereum, offering a well-defined strategy to investors. Importantly, Hashdex has excluded Ethereum staking from its plans, focusing solely on spot investments. Custody of the assets will be managed by BitGo and Coinbase Custody, ensuring that Bitcoin and Ethereum assets are securely stored in segregated accounts for individual shareholders.
Market Impact and Regulatory Landscape
This filing arrives shortly after the SEC acknowledged Hashdex’s 19b-4 form, following its submission in mid-June. As a result, Hashdex’s combined cryptocurrency ETF could soon be listed for trade, subject to final regulatory clearances. Notably, Hashdex’s announcement closely follows the launch of multiple spot Ether ETFs, which attracted significant investor interest, amassing $590.7 million in inflows on their initial trading day. Such developments underscore the growing demand and increasing regulatory scrutiny within the crypto ETF space.
Conclusion
Hashdex’s efforts in pioneering an index-based crypto ETF represent a significant stride towards mainstream acceptance of digital asset investments. By securing SEC approval, Hashdex could offer U.S. investors an innovative and regulated avenue to explore various cryptocurrencies beyond the market giants Bitcoin and Ethereum. As the regulatory environment continues to evolve, this ETF could serve as a pivotal development, aligning institutional investment strategies with the dynamic crypto market landscape.
