As an experienced analyst, I believe Hashdex’s decision to file for a Bitcoin-Etherum combined ETF is a smart move in response to market dynamics. With Ethereum-focused products becoming increasingly common, it makes sense for Hashdex to broaden its investment strategy and cater to a wider audience.
The SEC has confirmed receiving the 19b-4 application for the Hashdex Nasdaq Crypto Index US ETF. Assuming approval by early March 2025, this ETF will incorporate Bitcoin and Ethereum in its holdings.
The Securities Exchange Act of 1934 contains a rule identified as “19b-4.” This rule lays out the formal procedure and prerequisites for submitting applications regarding certain types of exchange-traded funds (ETFs) to the Securities and Exchange Commission (SEC). Essentially, it sets the framework for applying for ETFs in a manner consistent with regulatory requirements and streamlines the SEC’s assessment process.
Hashdex, which had previously attempted to launch an Ethereum ETF, recently withdrew its proposal due to intense competition in the market. Instead, the fund is now adopting a new strategy by investing in both Bitcoin and Ethereum. Specifically, Hashdex will allocate approximately 70.54% of its assets to Bitcoin and the remaining 29.46% to Ethereum. In order to securely hold these digital assets, Hashdex intends to collaborate with Coinbase Custody Trust Company and Bitcoin Trust.
Smart move by Hashdex?
Hashdex’s latest decision is a tactical response to market conditions, as the surplus of Ethereum-focused offerings triggered the need for a more diverse crypto investment approach. The public perception towards ETFS, especially from the SEC’s standpoint, holds significant weight and could potentially cause additional postponements, even with an initial favorable reaction.
As an analyst, I strongly recommend investors to keep a close eye on this particular development. This could mark a significant step forward in integrating traditional finance with the cryptocurrency market, a union long anticipated by industry observers.
With the SEC’s decision-making process now in motion, industry insiders such as Nate Geraci predict an increase in attention and examination in the run-up to the rumored approval date.
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2024-07-02 14:11