TL;DR
- Hashdex has applied to the SEC to create an ETF that will include Bitcoin and Ethereum.
- The ETF will allocate approximately 70.54% of the fund to Bitcoin and 29.46% to Ethereum, following a market-cap-weighted strategy.
- Coinbase Custody Trust Company and BitGo Trust Company will act as custodians of the ETF, ensuring the security of digital assets, with the potential future inclusion of other cryptocurrencies.
Hashdex, a renowned digital asset manager, has filed an application with the U.S. Securities and Exchange Commission (SEC) to create an ETF that would include both Bitcoin and Ethereum. This financial product, proposed under the name Hashdex Nasdaq Crypto Index US ETF, is designed to reflect the distribution of the two leading cryptocurrencies according to the Nasdaq Crypto Index.
The initiative aims to make a leap towards integrating digital assets into conventional financial instruments, expanding investor access to cryptocurrencies. In terms of composition, the ETF would allocate approximately 70.54% of the fund to Bitcoin and 29.46% to Ethereum, following a market-cap-weighted strategy that mirrors the structure of the Nasdaq Crypto Index.
Update: A dual Ethereum and #Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn't be a surprise to anyone — makes a lot of sense.
Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM
— James Seyffart (@JSeyff) June 18, 2024
To ensure the security of digital assets, the ETF will have Coinbase Custody Trust Company and BitGo Trust Company as custodians, in addition to maintaining cash reserves. While initially focused on Bitcoin and Ethereum, it may consider including other cryptocurrencies in the future, subject to corresponding regulatory approval.
Hashdex Recognizes the Key Moment for Crypto ETFs
This proposal comes after the SEC approved Bitcoin ETFs in January and amid expectations for Ethereum ETFs to be authorized soon in the U.S. market.
Hashdex has carefully crafted its strategy not only to capitalize on the growing interest of institutional and retail investors in cryptocurrencies but also to set a precedent for the digital asset ETF industry. It is expected that combining the accessibility and inherent regulation of ETFs with the volatility and growth potential of Bitcoin and Ethereum will attract a spectrum of investors interested in participating in the crypto market more securely and regulated.
Hashdex aims to revolutionize the global financial market with its dual Bitcoin and Ethereum proposal. Providing such tools to investors will catalyze the adoption and expansion of the crypto industry, promoting financial innovation and democratizing digital assets through regulated conventional platforms.
