Hashdex Proposes Combined Spot Bitcoin and Ether ETF to SEC

Hashdex Proposes Combined Spot Bitcoin and Ether ETF to SEC

YEREVAN (CoinChapter.com) — On June 18, Hashdex submitted a proposal to the United States Securities and Exchange Commission (SEC) to create a combined spot Bitcoin (BTC) and Ether (ETH) exchange-traded fund (ETF). If approved, this ETF will be listed on the Nasdaq exchange. The ETF will balance BTC and ETH according to their market capitalizations.

Hashdex's Bold ETF Proposal - Source: @hinchibun
Hashdex’s ETF Proposal. Source: X

Combined-Asset ETF: Analyst Insights

The ETF will balance the crypto assets based on their market capitalizations. As of May 27, Bitcoin accounts for 70.54% and Ether for 29.46% of the combined ETF. This passive investment strategy aims to track the daily market movement on the Nasdaq Crypto US Settlement Price Index without trying to outperform it.

James Seyffart, a Bloomberg analyst, said a combined-asset ETF “makes a lot of sense.” The ETF will invest only in BTC and ETH. However, there is a provision for including other crypto assets if they meet specific criteria. According to the filing, these assets must be listed on a U.S.-regulated digital asset trading platform or serve as the underlying asset for a derivative instrument listed on a U.S.-regulated derivatives platform.

Bloomberg Analyst on Hashdex ETF Proposal - Source: James Seyffart

Bloomberg Analyst on Hashdex ETF Proposal. Source: James Seyffart

Hashdex’s Custody, ETF History, and SEC Review

Hashdex has chosen Coinbase and BitGo as custodians for the BTC and ETH assets. They will manage segregated accounts for individual shareholders, ensuring security and transparency.

Hashdex has a history of filing for crypto ETFs. The Brazil-based investment manager previously filed for an ETH ETF but later withdrew the application. Their indexed crypto ETF in Brazil includes nine coins, with BTC and ETH making up nearly 92% of the value. Additionally, their U.S.-traded spot BTC ETF contains up to 5% BTC futures contracts, acquiring the spot asset on the CME.

Hashdex's Brazilian Crypto ETF Breakdown - Source: James Seyffart
Hashdex’s Brazilian Crypto ETF Breakdown. Source: James Seyffart

Hashdex must now await SEC approval on an S-1 application. The SEC has 90 days to respond to the 19-b4 filing. During this period, the agency will accept comments from the public and other financial institutions on the proposal.

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