Hashdex, a Brazil-based cryptocurrency asset management platform, has recently filed for the approval of a dual ETF consisting of both Bitcoin and Ethereum (ETH), the two largest cryptocurrencies in the world. This move comes as the race for Spot Ethereum ETF approval heats up, with expectations for an official debut before the end of the year. The company initially withdrew its Spot Ethereum ETF application on May 24, one day after the SEC approved ETH ETF applications.
Unlike the traditional approach of filing individual ETFs, Hashdex has taken a new strategy by applying for a combined Bitcoin and Ethereum ETF. If approved by the United States Securities and Exchange Commission (SEC), Hashdex will become the first provider of a Spot Bitcoin and ETH ETF. The ETF will be market-weighted based on the total market capitalization of Bitcoin and Ethereum, with Bitcoin accounting for 70.54% and Ethereum for 29.46%. The filing also allows for the potential addition of other eligible crypto assets to the ETF.
It is worth noting that Hashdex already manages a crypto index ETF in Brazil, where Bitcoin and ETH make up 90% of the holdings. This background aligns with the company’s strategic goals of expanding into the United States market with their dual Bitcoin and Ethereum ETF. Additionally, Hashdex plans to utilize two custodians, namely Coinbase Custody Trust Company, LLC, and BitGo Trust Company, Inc., to safeguard the trust’s Bitcoin and Ethereum assets.
As for the timeline of the potential Ethereum Spot ETFs, industry experts predict that the approval and official trading of ETH ETFs will likely begin in the next few weeks. Bloomberg Senior Analyst, Eric Balchunas, has forecasted a debut by July 2, 2024. While the SEC has approved 19b-4 forms for eight Spot ETH ETFs, the regulator still needs to approve S-1 registration statements to kickstart trading. SEC Chairman Gary Gensler indicated that S-1 approvals are expected by the end of the summer.
In contrast, the deadline for the SEC’s approval of Hashdex’s combined Bitcoin and Ethereum ETF is projected to be around the first week of March 2025. This timeline provides a glimpse into the regulatory process and potential launch of new investment products in the cryptocurrency market. With the growing interest in crypto ETFs, Hashdex’s innovative approach and strategic partnerships aim to meet the evolving demands of investors seeking exposure to digital assets through traditional financial instruments.
