Digital asset management firm Hashdex filed an S1 registration form with the U.S. Securities and Exchange Commission (SEC) on June 24th to offer exchange-traded funds tracking multiple digital assets. The form is for its Hashdex Nasdaq Crypto Index U.S. ETF.
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The filled-out documents suggest that the fund will initially track Bitcoin and Ethereum after approval, but more digital assets will be incorporated later on. This proposal will give crypto investors a chance to diversify their exposure to multiple digital assets without the need for self-custody.
Once approved, the U.S. SEC will require the fund to submit a 19b-4 document seeking the commission’s approval to add other crypto assets to the ETF.
U.S. SEC has until March 2025
Update: @hashdex has filed an S-1 for their Crypto Index ETF. Will start with just #Bitcoin & #Ethereum but can add other assets if and when approved by the SEC. https://t.co/W3uHyv9MYn pic.twitter.com/DFXouwu4IK
— James Seyffart (@JSeyff) July 24, 2024
Bloomberg Intelligence crypto analyst James Seyffart revealed that the U.S. regulator has until March 2025 to approve or deny the crypto index ETF. Seyffart also emphasized that the Hashdex Nasdaq Crypto Index U.S. ETF will be the first dual/multi-spot ETF in the U.S.
On June 18th, Hashdex proposed creating a combined spot Bitcoin and Ether ETF on the Nasdaq exchange, seeking to balance crypto assets based on their market capitalization. The regulator acknowledged the filing in late June.
If both proposals are approved, the ETF weighting based on market capitalization would see Bitcoin command 76.3% and Ether command 23.7%.
Hashdex’s proposed ETF will track assets on the Nasdaq Crypto U.S. Settlement Price Index
In the July 24th filings, Hashdex indicated that its provisions would mimic the assets offered on the Nasdaq Crypto U.S. Settlement Price Index, which tracks the value of the Nasdaq Crypto U.S. Index.
Among the digital assets listed in the Nasdaq Crypto U.S. Settlement Price Index are Chainlink (LINK), Uniswap (UNI), Litecoin (LTC), and Filecoin (FIL). Therefore, it’s possible that Hashdex could submit 19b-4 filings with the commission to add any or all of these digital assets to its ETF after the initial ETF approval.
“Hashdex Nasdaq Crypto Index US ETF is designed to provide investors with price exposure to certain crypto assets, namely those included in the Nasdaq Crypto US Settlement Price Index.”
Hashdex has selected Coinbase Custody and BitGo to serve as custodians for the asset manager’s Bitcoin and Ethereum holdings. The digital assets under management will be isolated in multiple accounts to safeguard their custody for shareholders.
On July 23rd, Ether’s spot ETFs officially launched in the U.S. jurisdiction. The first trading day saw a combined net inflow of $590 million, excluding Grayscale Ethereum Trust’s outflows. The US regulator approved 11 Bitcoin spot ETFs that surpassed $16 billion in inflows in just six months. The Bitcoin and Ether spot ETFs have outperformed analysts’ expectations.
