As a researcher with a background in fintech and experience in following the cryptocurrency market, I find Hashdex’s announcement of its intention to launch a hybrid spot ETF tracking Bitcoin and Ethereum an intriguing development. The potential ease of investment exposure to these two major digital currencies via the public securities market is an attractive proposition for both retail and institutional investors.
A Brazilian cryptocurrency investment firm, Hashdex, plans to debut a unique ETF blend, following both Bitcoin and Ethereum‘s market fluctuations.
“The Shares are designed to provide a straightforward means of obtaining
As a crypto investor, I can choose to gain access to Bitcoin and Ether through investing in the public securities market instead of purchasing, keeping, and dealing with the actual cryptocurrencies directly on a peer-to-peer or other basis, or via a digital asset exchange.
Hashdex plans to simultaneously use at least two custodians for the ETF (BitGo and Coinbase).
As an analyst, I would explain it this way: I’ll be analyzing the Hashdex Nasdaq Crypto Index US ETF, which is a capitalization-weighted fund. This means that the stocks or in this case, cryptocurrencies, in the portfolio are allocated based on their current market value. With Bitcoin (BTC) making up approximately 70.54% of the total portfolio, it holds a significant weighting. The composition of the ETF will be updated every quarter to reflect any market value changes.
Hashdex hasn’t excluded the possibility of incorporating additional digital currencies. Yet, any modifications would necessitate prior approval from the Securities and Exchange Commission (SEC).
An asset manager’s crypto index Exchange-Traded Fund (ETF) stationed in Brazil holds investments in cryptocurrencies like Solana (SOL), XRP, Cardano (ADA), Litecoin (LTC), and Polygon (MATIC), alongside Bitcoin and Ethereum.
According to James Seyffart, an analyst at Bloomberg Intelligence, it is logical and potentially valuable for a company to introduce such a product in the US market in the future. He expressed his belief that individuals who see potential uses of digital assets beyond Bitcoin’s current function would find this product attractive. Furthermore, this offering would cater well to financial advisors seeking diversified exposure within the cryptocurrency sector.
According to U.Today’s report, Hashdex pulled back its ETF proposal in late May, which aimed to merge futures-based Ethereum contracts with Ethereum’s spot market.
The approval deadline for its new proposal should be around March 2025, according to Seyffart.
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2024-06-18 21:31