SEC Reviews Hashdex's New Proposal

The United States Securities and Exchange Commission (SEC) has acknowledged an application from Hashdex for a unique exchange-traded fund (ETF) that 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 in the U.S., setting a new standard in the digital economy.

Hashdex filed its application on June 18, 2024, seeking to offer the first combined spot Bitcoin and Ether ETF in the U.S. The company plans to list this ETF on the Nasdaq stock exchange, making it easily accessible to investors once it receives SEC approval.

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/XurKX448Abpic.twitter.com/KffbemblOb — Nate Geraci (@NateGeraci) July 1, 2024

The ETF will allocate investments based on the market capitalizations of Bitcoin and Ethereum, with 70.54% in Bitcoin and 29.46% in Ether as of May 27, 2024. This allocation ensures the fund's holdings reflect the relative size and value of these cryptocurrencies in the market. The product will adopt a passive investment strategy, tracking the Nasdaq Crypto US Settlement Price Index to mirror daily market movements without trying to outperform them.

As of June 1, the ETF entered the review phase, with the SEC acknowledging the application. If approved, this could introduce more diversified and innovative investment options into the crypto market, allowing investors to participate without directly owning Bitcoin or Ethereum.

Currently, U.S. investors have access to 11 spot Bitcoin ETFs launched by companies like BlackRock, Bitwise, Grayscale Investments, and Fidelity. These ETFs, approved by the SEC in January, have been very successful, attracting millions of dollars daily.

Following the success of Bitcoin ETFs, U.S. asset managers have also applied for Ethereum spot ETFs. The SEC has approved the initial round of applications, and the industry is hopeful for final approval later this year, possibly by July 4.

Meanwhile, VanEck and 21Shares have filed for another crypto ETF to track Solana (SOL), marking the first time Solana has been considered for an ETF. This could lead to more innovative products and broader adoption in the crypto market.

Hashdex’s dual Bitcoin and Ethereum ETF could significantly impact the investment landscape, offering a diversified approach to crypto investing. If approved, it would attract a broad range of investors, from institutional to retail, further legitimizing the crypto market and boosting investor confidence.

In conclusion, Hashdex’s submission for a dual Bitcoin and Ethereum ETF represents a significant step towards greater innovation and diversification in crypto investments. With the SEC’s acknowledgment, the potential approval could pave the way for more combined crypto investment products, offering diversified exposure to digital assets within traditional investment frameworks.