Hashdex, an asset management firm, has submitted a proposal to the US Securities and Exchange Commission (SEC) for a new exchange-traded fund (ETF) that merges spot Bitcoin (BTC) and Ethereum (ETH).
The Hashdex Nasdaq Crypto Index US ETF seeks to offer investors direct exposure to the top two cryptocurrencies, representing a notable step towards incorporating crypto assets into conventional financial markets.
The ETF’s portfolio will be comprised primarily of Bitcoin and Ethereum, while cash reserves will be maintained only for covering expenditures. The fund will utilize a passive investment approach by closely following the Nasdaq Crypto US Settlement Price Index (NCIUSS), which will attract both seasoned traders and beginners.
Coinbase and BitGo will offer custodial services for Bitcoin and Ethereum assets. The ETF’s index constituents as of May 27, 2024 consisted of 70.54% BTC and 29.46% ETH. This market capitalization-weighted structure provides equitable exposure to prominent cryptocurrencies.
The Securities and Exchange Commission (SEC) is allotted a period of 90 days to thoroughly examine the plan, and it is expected that a definitive verdict will be reached by March 2025. James Seyffart, a financial expert specializing in exchange-traded funds (ETFs) at Bloomberg Intelligence, emphasized the ETF’s structure, which is based on the market capitalization of its constituent assets.
He also pointed out the possibility of the ETF including other digital assets approved by the Securities and Exchange Commission (SEC) in the future.
The crypto industry is eagerly anticipating the approval of spot Ethereum exchange-traded funds (ETFs), which may be granted during the summer. However, no specific date has been provided for their trading debut.
Hashdex’s proposal for an Exchange-Traded Fund (ETF) is a significant milestone in the process of integrating crypto assets into conventional financial markets.
Hashdex seeks to enhance accessibility to a wider variety of investors by providing a consolidated Bitcoin and Ethereum ETF, thereby streamlining the investment process.
The implementation of a passive investing strategy, which mirrors the performance of the NCIUSS, simplifies the intricacies and enhances the accessibility of the product for investors.
Ethereum (ETH) experienced a 6% increase in value to over $3,500 in global crypto markets, following the US SEC’s investigation into its sale. Consensys Software, an Ethereum developer, announced that the SEC’s Enforcement Division will not take legal action over ETH’s sale as securities transactions.
