New Hashdex ETF Proposal to Feature Market Cap Weighted Bitcoin and Ethereum Holdings

• Hashdex, a leading crypto asset management firm, has recently filed to launch an ETF backed by spot Bitcoin and Ethereum holdings.
• This innovative financial product aims to offer exposure to the two largest cryptocurrencies by market cap in a market cap-weighted format.
• A noteworthy aspect of the ETF is its use of multiple custodians, including Coinbase and BitGo, to manage the assets effectively.

This article dives deep into Hashdex’s new ETF filing, analyzing its potential impact on the crypto market and the broader financial landscape.

The First-of-Its-Kind Hashdex Crypto Index US ETF

On Tuesday, analysts spotted the new product filing for the Hashdex Nasdaq Crypto Index US ETF in a form 19b-4 from the Nasdaq stock exchange. The request seeks SEC approval to list shares of this unique ETF.

“The Trust’s assets will consist of bitcoin and ether,” the public filing specified. “In limited circumstances, the Trust will hold cash to manage expenses.”

Based on cryptocurrency prices from May 27, the ETF’s market cap-weighted exposure would allocate 70.54% to Bitcoin and 29.46% to Ethereum. However, the Trust clarified that its investments aim for performance tied directly to crypto market cap weightings and will not engage in staking its Ethereum holdings for additional yield.

This application appears timely, considering the recently approved Bitcoin spot ETFs and upcoming Ethereum spot ETFs, which the SEC expects to launch this summer.

Adding a layer of security and diversification, the ETF will use multiple custodians, notably Coinbase and BitGo, to safeguard its assets.

The Possibility of Expanding Beyond Bitcoin and Ethereum

Hashdex’s filing has sparked speculation about the inclusion of other cryptocurrencies in similar financial products. While the current application explicitly states no intention to invest in other spot crypto assets besides Bitcoin and Ethereum, the language leaves open the possibility for future inclusions. This would hinge on other cryptocurrencies being approved as commodities by regulatory bodies.

Bloomberg ETF analyst James Seyffart weighed in on the matter,

“This shouldn’t come as a surprise to anyone — it makes complete sense as a future goal.”

The ultimate deadline for the SEC to either approve or reject Hashdex’s proposal is March 2025, a milestone eagerly awaited by market participants.

Future Trajectory: What Lies Ahead for Crypto ETFs?

The approval of Bitcoin and Ethereum spot ETFs marks a significant milestone in the crypto space, potentially paving the way for other digital assets to receive similar acceptance. DMA Environments and blockchain interoperability projects present new avenues for regulatory discussions and investment opportunities.

Investors and analysts are keenly watching to see how these initial steps will influence the broader crypto market, including memecoins like Dogecoin and newer market entrants like BONK. The ongoing dialogue between crypto innovators, traditional financial entities, and regulatory agencies may define the next wave of digital asset adoption and financial product innovation.

Conclusion

Hashdex’s application for a spot Bitcoin and Ethereum ETF represents an exciting development in the evolving crypto finance landscape. With potential approval on the horizon, the fund promises to offer robust market exposure while navigating the complexities of regulatory compliance. Investors should monitor the SEC’s response and prepare for a dynamic shift in crypto investment possibilities.