Asset management company Hashdex recently proposed a spot exchange-traded fund (ETF) combining Bitcoin (BTC) and Ethereum (ETH) to the U.S. Securities and Exchange Commission (SEC). Named ‘Hashdex Nasdaq Crypto Index US ETF’, the ETF aims to provide investors with direct exposure to two major cryptocurrencies.
This move marks an important step towards mainstream adoption of cryptocurrency assets in traditional financial markets.
Take a look at Hashdex’s latest spot cryptocurrency ETF report
According to a recent 19b-4 filing, the ETF's assets will consist solely of Bitcoin and Ethereum, and cash will be held only to cover expenses. This ETF will use a passive investment strategy that tracks the Nasdaq Cryptocurrency United States Settlement Price Index (NCIUSS).
This strategy does not attempt to outperform this index. This approach simplifies the process for investors, making it an attractive option for both seasoned traders and new investors.
Read more: Cryptocurrency ETNs and Cryptocurrency ETFs: What's the Difference ?
The ETF uses Coinbase and BitGo to protect its Bitcoin and Ethereum holdings. The document also states that the index constituents and their weight as of May 27, 2024 are Bitcoin 70.54% and Ethereum 29.46%.
Hashdex's filing is consistent with other potential Ethereum spot ETF issuers . It states that neither the fund nor its related parties will be involved in Ethereum staking. The SEC has 90 days to review the proposal, and a final decision is expected to be made by March 2025.
James Seipart, ETF analyst at Bloomberg Intelligence, commented on Hashdex's application: He highlighted the market cap weighting structure and the potential to include other digital assets approved by the SEC.
“Hashdex already has a cryptocurrency index ETF traded in Brazil. The following are the assets currently held and their proportion in the fund. 90% are Bitcoin and Ethereum. So bringing something like this to the United States makes perfect sense as a future goal,” he noted .
Despite Hashdex's new approach, some in the cryptocurrency community have reacted with skepticism. They said it makes no sense to include Bitcoin and other digital assets in ETFs .
But Seyfat defended this strategy. He argued that the ETF’s structure “makes a lot of sense” for those seeking diversified exposure to digital assets . Nonetheless, approving a fund like the Hashdex Nasdaq Cryptocurrency Index US ETF would mark another milestone in the spot cryptocurrency fund sector.
Read more: Ethereum ETF explained: What it is and how it works
Currently, the cryptocurrency market is eagerly anticipating the approval of an Ethereum spot ETF. BeInCrypto reported that SEC Chairman Gary Gensler said the ETF could receive approval in the summer . However, he did not specify a timeline for his trading debut.
Meanwhile, Eric Balchunas, another ETF analyst at Bloomberg Intelligence, predicted that trading could begin as early as July 2 .
Trusted
The information contained on the BeInCrypto website is published in good faith and for informational purposes only. Users are solely responsible for any consequences arising from their use of information on the website.
In addition, some contents are AI-translated English versions of BeInCrypto articles.
