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The cryptocurrency landscape is shifting rapidly as asset managers race to secure ETF approvals, with Hashdex leading the charge with its latest filing.
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As competition heats up in the crypto ETF market, recent filings are a testament to the growing mainstream acceptance of digital assets.
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“This filing signals a significant milestone in our journey to offer retail and institutional investors a diversified crypto investment,” said Hashdex CEO.
Hashdex pushes forward with its Nasdaq Crypto Index ETF as XRP ETF registrations heat up, indicating a strong trend in digital asset investments.
Hashdex’s Crypto ETF Pursuit Intensifies
The latest amendment follows Hashdex’s initial S-1 filing. The filing was modified in October as the SEC requested more time for review. The ETF aims to initially include Bitcoin [BTC] and Ethereum [ETH], the two assets currently tracked by the Nasdaq Crypto US Index. Over time, the portfolio could expand to feature additional digital currencies, according to the filing.
Hashdex’s ambitions mirror broader efforts by key players like Franklin Templeton and Grayscale, which are vying for a share of the ETF market. Franklin Templeton’s proposed ETF includes BTC and ETH, while Grayscale’s Digital Large Cap Fund aims for a more diversified experience by also incorporating alternative cryptocurrencies such as Solana [SOL], Avalanche [AVAX], and Ripple [XRP].
Spotting Trends in BTC and ETH ETFs
Meanwhile, the broader cryptocurrency ETF market continues to achieve new milestones. Spot Bitcoin ETFs recorded net inflows of $3.38 billion for the week of 18th–22nd November—a remarkable 102% increase from the previous week’s $1.67 billion. This marked the largest weekly inflow on record and the seventh consecutive week of positive flows, according to SoSo Value. However, a slight downturn was observed, with ETFs seeing $438.38 million in outflows on 25th November.
Interestingly, ETH ETFs witnessed six consecutive days of outflows before bouncing back on 22nd November, recording a net inflow of $2.83 million. Furthermore, total net assets for ETH ETFs surpassed double digits for the first time since launch, reaching $10.28 billion on 25th November.
WisdomTree’s XRP ETF Venture
The ETF hype isn’t limited to BTC and ETH. Another significant player, WisdomTree, known for its global ETF offerings, has applied to create an XRP-focused ETF in Delaware. This filing marks a strategic move by the firm, which manages over $100 billion in assets, and is expected to precede a formal S-1 application with the SEC. WisdomTree joins a growing list of firms, including Bitwise and 21Shares, in positioning themselves for a piece of the expanding ETF market.
Source: Eleanor Terrett/X
Changing SEC Landscape: Implications for Crypto ETFs
The evolving SEC regulatory landscape has fueled increased interest and activity in crypto ETF filings. Recent reports have indicated that Gary Gensler, the SEC Chair known for his stringent stance on crypto regulation, is set to resign on 20th January 2025. This change coincides with the anticipated second term of Donald Trump, who has expressed intentions to elevate the United States as a leading player in the global crypto market.
This political shift may lead to a more favorable environment for crypto ETFs and related asset innovations. Industry stakeholders are watching closely to see if the SEC will adopt a more progressive stance on ETF approvals or maintain its cautious approach amidst growing interest.
As the stage is set for potential shifts, the coming months may define a crucial chapter in the evolution of the cryptocurrency market, making it a pivotal time for both investors and asset managers alike.
Conclusion
The recent filings by Hashdex and other asset managers underscore the robust growth and interest in crypto ETFs. As Bitcoin and Ethereum continue to dominate the market, the introduction of XRP and other altcoin ETFs suggests a diversification trend that could reshape investment strategies. With a potential change in the SEC’s oversight, the future of crypto ETFs appears poised for significant development. Stakeholders must remain engaged and informed to navigate this evolving landscape successfully.
