Hashdex Submits Application to SEC for Bitcoin and Ethereum ETF Combination
Hashdex, a cryptocurrency asset manager based in Brazil, has submitted a request to the Securities and Exchange Commission (SEC) for approval of a combined spot Bitcoin and Ethereum exchange-traded fund (ETF) called the Hashdex Nasdaq Crypto Index US ETF.
If approved, this ETF would be revolutionary as it would be the first fund to directly hold both Bitcoin and Ethereum in the American market. The proposed ETF, filed through Form 19b-4 with the Nasdaq, would track the Nasdaq Crypto Index (NCI), a market-capitalization weighted index.
The composition of the fund would primarily consist of Bitcoin (70.54%) and Ethereum (29.46%), reflecting the relative weightings of these dominant cryptocurrencies. In addition, the ETF would hold cash, with Coinbase Custody and BitGo designated as custodians upon launch.
This filing from Hashdex comes at a significant time for crypto funds in the U.S., with the SEC approving the first spot Bitcoin ETFs in January and initial approvals for spot Ethereum ETFs in late May. SEC Chair Gary Gensler has indicated that he expects these Ethereum ETFs to begin trading this summer.
While the current focus of the Hashdex ETF is on Bitcoin and Ethereum, the filing suggests that it may potentially incorporate additional cryptocurrencies in the future, provided they meet specific criteria, such as being listed on U.S.-regulated platforms or serving as the underlying asset for derivative instruments on such venues.
The ETF is designed to follow a passive investment strategy, aiming to track the NCI’s performance regardless of market direction. This approach signifies the company’s intention to provide investors with exposure to the overall cryptocurrency market represented by the index, rather than attempting to outperform it.
The final SEC approval deadline for the Hashdex application is expected to be around the first week of March 2025, according to Bloomberg ETF analyst James Seyffart. He also noted that the filing includes language that could allow the addition of other digital assets as they receive SEC approval.
