Spot Ethereum ETFs Race Heats Up With Double-Edged Filing From Hashdex

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As a seasoned crypto investor with a keen interest in the latest developments within the industry, I’m keeping a close eye on Hashdex’s application for a Bitcoin and Ethereum dual ETF. This innovative approach taken by the Brazil-based asset management company is an intriguing move, particularly given the growing anticipation surrounding the imminent launch of Spot Ethereum ETFs.

Hashdex, a Brazilian firm specializing in cryptocurrency asset management, has requested regulatory approval for a pair of exchange-traded funds (ETFs). These ETFs will include investments in Bitcoin and Ethereum, the two largest digital currencies. This announcement follows increased interest in Ethereum ETFs as the market awaits an official launch before the end of the year.

Hashdex Files Combined Bitcoin And Ethereum ETFs

In a post dated June 18th on X, which was previously known as Twitter, Bloomberg analyst James Seyffart announced Hashdex’s latest Securities and Exchange Commission (SEC) filing for a Bitcoin-Ethereum combined Exchange Traded Fund (ETF). Previously, on May 25th, Hashdex had withdrawn its application for a Spot Ethereum ETF, submitting the withdrawal notice just one day after the SEC gave approval to other Ethereum ETF proposals.

As a researcher studying the latest developments in the cryptocurrency exchange-traded fund (ETF) market, I’m excited to share that Hashdex is taking an innovative approach with its new ETF application. Instead of following the conventional route by filing for individual Bitcoin and Ethereum ETFS, Hashdex has opted for a dual Bitcoin and Ethereum ETF.

The Bloomberg analyst revealed that Hashdex’s crypto ETF, which includes both Ethereum and Bitcoin, will distribute its weighting evenly according to each cryptocurrency’s overall market value.

In the filing, Bitcoin makes up approximately 70.54%, while Ethereum composes around 29.46% of the total crypto assets in Hashdex’s combined ETF. The document further reveals that other cryptocurrencies may be integrated into the Bitcoin and Ethereum dual ETF. However, only those meeting specific requirements and being eligible for inclusion will be considered for addition.

Hashdex, led by Seyffart, currently oversees a crypto index ETF in Brazil. This particular ETF is characterized by a broad collection of cryptocurrencies, with Bitcoin and Ethereum accounting for approximately 90% of its assets. Given this composition, it’s not unexpected that Hashdex has applied for the approval of a dual crypto ETF in the United States. This move aligns well with the company’s long-term strategic objectives.

A Bloomberg analyst has shared that Hashdex intends to engage at least two custodians for safeguarding its Bitcoin and Ethereum ETF assets. The filing indicates that discussions have commenced concerning partnerships with Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc for the secure storage of all relevant digital assets.

When Will EthETHereum Spot ETFs Start Trading?

An analyst on the cryptocurrency platform X, known as ‘Crypto Capo,’ has forecasted that Ethereum Spot ETFs will receive approval and begin trading in the coming weeks. This prediction coincides with Bloomberg Senior Analyst Eric Balchunas’ prediction that Ethereum Spot ETFs will launch by July 2, 2024.

The US Securities and Exchange Commission (SEC) has given its green light to 19b-4 forms for eight Ethereum (ETH) exchange-traded funds (ETFs). However, before trading in these ETH ETFs can commence, the SEC must still review and approve their S-1 registration statements. According to Gary Gensler, the Chairman of the SEC, such approvals are anticipated towards the end of summer.

During this time, Seyffart has disclosed that Hashdex’s application for a Bitcoin-Ether combined ETF with the SEC is anticipated to secure approval by early March 2025.

Spot Ethereum ETFs Race Heats Up With Double-Edged Filing From Hashdex

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2024-06-19 19:11