crypto asset management company Hashdex is filing to launch an ETF backed by spot holdings of bitcoin and ethereum, the two largest cryptocurrencies by market cap.
The American Hashdex crypto Index ETF
Analysts discovered the product in a form 19b-4 of the Nasdaq stock exchange on Tuesday, requesting permission from the Securities and Exchange Commission (SEC) to list shares of the American Hashdex Nasdaq crypto Index ETF.
“The assets of the Trust will consist of bitcoin and ether,” the document said. “In limited circumstances, the Trust will hold cash to cover its expenses.”
The ETF's exposure to bitcoin and ethereum will be weighted by market capitalization. Using cryptocurrency prices on May 27, this would imply a 70.54% allocation to btc and a 29.46% allocation to eth.
“The Trust's investments will not be used to seek a return that is a multiple or inverse of the Trust's index,” the filing clarified. You also won't stake any of the fund's ethereum to try to get a return.
The filing follows hot on the heels of the listing of bitcoin spot ETFs in January and the SEC's recent confirmation that ethereum spot ETFs will go live sometime this summer.
Unlike other crypto ETFs, the fund also aims to use multiple custodians for its assets, including Coinbase and BitGo.
Could HashDex include more cryptocurrencies?
The approval of the bitcoin and ethereum ETFs has opened investors' minds to the possibility of a flood of other cryptocurrencies receiving approval, including memecoins like Dogecoin and BONK.
Although Hashdex's filing said it “would not invest in any other spot crypto assets other than bitcoin and ether,” some of its language left room to include other cryptocurrencies should regulators approve them as commodities, rather than securities. .
The final deadline for the SEC to approve or reject the product will be March 2025.
“It shouldn't be a surprise to anyone; it makes a lot of sense.” twitter.com/JSeyff/status/1803087759281701224″ data-wpel-link=”external” target=”_blank”>saying Bloomberg ETF analyst James Seyffart on the request. “Bringing something like this to the United States makes a lot of sense as a future goal.”
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