Hashdex, a crypto asset management firm, has proposed a spot exchange-traded fund (ETF) that would directly hold both Bitcoin and Ethereum. The proposal, named Hashdex Nasdaq Crypto Index US ETF, was disclosed by Nasdaq through a Form 19b-4 filing on June 18. The filing does not specify the ratio of the holdings, but it aims to give investors combined exposure to the two largest cryptocurrencies. The final deadline for SEC approval is set for March 2025.
The announcement of the proposal was welcomed by Bloomberg ETF analyst James Seyffart, who stated that a dual Ethereum and Bitcoin ETF filing from Hashdex was market cap weighted and made a lot of sense. This proposal comes after the SEC’s approval of spot Bitcoin ETFs earlier in the year and its recent approval of 19b-4 forms for several spot Ethereum ETFs. The SEC still needs to approve the registration statement forms for the Ethereum products as part of the two-step approval process.
Unlike other firms like BlackRock and Fidelity, Hashdex has chosen not to pursue a standalone spot Ethereum ETF at this time. If the Hashdex Nasdaq Crypto Index US ETF is launched, Coinbase Custody Trust Company and BitGo Trust Company are expected to serve as custodians. The ETF will also hold cash, according to the Form 19b-4 filed by Hashdex. The filing states that the Trust will not invest in other spot cryptocurrencies beyond Bitcoin and Ether.
However, the filing also includes language that allows for the inclusion of other digital assets if approved by the SEC. It states that the Trust may invest in additional digital assets if they align with the investment objectives of the Trust and are approved by the SEC. This flexibility allows for potential diversification of the ETF’s holdings in the future.
Overall, the proposal for the Hashdex Nasdaq Crypto Index US ETF represents a significant development in the cryptocurrency market, as it aims to provide investors with exposure to both Bitcoin and Ethereum through a single investment vehicle. With the increasing interest in cryptocurrencies from institutional and retail investors, this ETF could attract a lot of attention and potentially pave the way for similar products in the future.
