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Hashdex submitted an application for the product on June 18, 2024, seeking to be the first to offer a combined spot Bitcoin and Ether ETF in the United States.
The United States Securities and Exchange Commission (SEC) has acknowledged the filing of an innovative exchange-traded fund (ETF) submitted by Hashdex, a crypto-focused asset management company.
The ETF aims to track the prices of both Bitcoin (BTC) and Ethereum (ETH). If approved, this dual crypto fund would be the first of its kind, setting a new precedent in the rapidly evolving world of the digital economy.
Hashdex ETF Application Details
Hashdex submitted an application for the product on June 18, 2024, seeking to be the first to offer a combined spot Bitcoin and Ether ETF in the United States. According to the filing, the company plans to list the fund on the popular stock exchange Nasdaq, providing easy access to investors once it receives authorization from the SEC.
Additionally, the firm disclosed that the ETF would allocate its investments based on the market capitalizations of the two cryptocurrencies, holding 70.54% in Bitcoin and 29.46% in Ether as of May 27, 2024. This means that the funds would be distributed in proportion to the relative size and value of Bitcoin and Ether in the market, ensuring the ETF holdings reflect their market prominence.
The crypto investment product would also adopt a passive investment strategy. The firm said the fund would track the Nasdaq Crypto US Settlement Price Index to reflect the daily movements in the market without attempting to outperform it.
As of June 1, the dual crypto ETF entered the review phase as the SEC acknowledges the filing of the application.
SEC has acknowledged 19b-4 filing for Hashdex Nasdaq Crypto Index US ETF…
Decision clock starts ticking.
Would hold both spot btc & eth. https://t.co/XurKX448Ab pic.twitter.com/KffbemblOb
— Nate Geraci (@NateGeraci) July 1, 2024
However, the outcome of the review could mark the beginning of the introduction of more diversified and innovative investment options into the crypto market.
The move would offer investors from different backgrounds the opportunity to participate in crypto investing without directly owning either of the assets that make up the ETF.
Current Crypto ETF Landscape
Currently, both institutional and retail investors in the United States have access to 11 spot Bitcoin ETFs launched by financial companies such as BlackRock, Bitwise, Grayscale Investments, and Fidelity. The SEC approved the trading of these investment products in January this year and so far, the funds have been successful compared to their counterparts in other regions such as Hong Kong. These Bitcoin ETFs see millions of dollars in investments almost on a daily basis, proving their popularity among investors.
Building on this momentum, US-based asset managers also plan to offer Ethereum spot ETFs. The companies submitted applications to the SEC earlier this year following the launch of Bitcoin’s ETF.
So far, the SEC has approved the initial round of applications for the funds with the industry hoping for final approval later this year to begin trading. Industry analysts had predicted that the financial watchdog could approve the final phase later this week on July 4.
While the crypto market awaits the SEC’s final greenlight, two major asset managers, VanEck and 21Shares, have recently filed for another crypto ETF that would directly track the price of Solana (SOL).
The move marks the first time the crypto token will gain such recognition to be considered for an ETF since its launch.
