Bitcoin continues to remain stable above 34K, and the community has more and more confidence in Bitcoin spot ETFs. Even Bloomberg ETF analyst James Seyffart also retweeted an article about Hashdex’s application for ETF, believing that Hashdex’s application is tailor-made based on every argument made by the SEC in the past, and it may be difficult for the SEC to reject it.
In the event that the SEC finds a way to deny all other #Bitcoin ETFs (not my base case) @hashdex 's application is tailored to every argument SEC has made in the past. I don't think they'll be able to deny this one. https://t.co/6Y8efd50Qt
— James Seyffart (@JSeyff) October 25, 2023
Hashdex Bitcoin ETF (DEFI) applies for transition
Hashdex is an asset management company that focuses on crypto-related investments. According to its statistics as of the end of September , Hashdex's asset management scale was US$380 million and it has a total of 14 crypto-related exchange-traded products (ETPs).
Hashdex Bitcoin Futures ETF (DEFI) was established in September 2022 to provide investors with a way to invest in cryptocurrency through Bitcoin futures contracts. Its current net assets are US$2.14 million.
Hashdex submitted proposed rule changes to the U.S. Securities and Exchange Commission (SEC) in late September for the Hashdex Bitcoin ETF (DEFI), which would invest in Bitcoin futures contracts as well as entities within the limits allowed by investment restrictions on spot Bitcoin. Bitcoin to achieve its investment goals. In other words, DEFI hopes to become a strategic fund that holds both Bitcoin spot and futures. Under this premise, the fund will also be renamed Hashdex Bitcoin ETF.
How to provide Bitcoin spot trading regulated by CME Markets
In order to solve the concern that Bitcoin is "potentially manipulated by unregulated exchanges" in the eyes of the SEC, Hashdex proposed using CME (CME Group)'s Over-the-Counter Market Trading (Exchange for Physical, EFP) to solve this problem.
The so-called EFP is an "over-the-counter" transaction that is conducted outside the centralized market of an exchange. EFP transactions are transactions negotiated privately between the parties and must be reported to the exchange upon completion, most commonly as a conversion between futures and spot trading. Since both parties to the transaction must be CME members, all transactions will be monitored by CME.
Hashdex emphasized that the Bitcoin futures contracts held by the fund and the physical Bitcoin traded through EFP will be traded on the CME market, so that the exchange can help discover and block transactions with these assets based on the ability of its members to share information. Relevant fraudulent or manipulative misconduct.
SEC should review by November 17
According to data compiled by ABMedia(based on Bloomberg terminal data), Hashdex Bitcoin ETF (DEFI) and Franklin Bitcoin ETF are the recently submitted Bitcoin spot ETFs. The SEC will make a review decision on them before November 17. As early as Other Bitcoin spot ETFs such as BlackRock and Ark (mostly in mid-January next year). As for whether it is as optimistic as Bloomberg ETF analysts think, only time will tell.
