The Nasdaq stock exchange has submitted an application to the United States Securities and Exchange Commission (SEC) seeking approval for the listing of an Ethereum (ETH) Exchange Traded Fund (ETF).
As mentioned in the 19b-4 form, the ETF dubbed Hashdex Nasdaq Ethereum ETF is proposed by Hashdex, a Brazilian asset management company.
The Nasdaq Hashdex Ethereum ETF
Notably, the Hashdex Nasdaq Ethereum ETF will be controlled and supervised by Toroso Investments, and it was meticulously crafted to encompass a diversified portfolio, incorporating both spot Ethereum and Futures contracts.
Nasdaq’s move to introduce an Ethereum ETF represents a significant development in the cryptocurrency and blockchain space. Ethereum, the world’s second-largest cryptocurrency by market capitalization, has garnered substantial attention from investors due to its versatility and potential applications beyond digital currency. As such, the Nasdaq filing marks a notable step towards making ETH more accessible to traditional investors.
Like regular ETFs, the Hashdex Nasdaq Ethereum ETF is designed to provide investors with exposure to Ethereum’s price movements without requiring them to directly own or manage the cryptocurrency themselves.
However, Nasdaq also mentioned in the document submitted that, instead of holding 100% Spot Ethereum, the Fund could hold a mix of Spot Ethereum, Ethereum Futures contracts, and cash. By holding Spot Ethereum, its Futures contracts, and cash, the Fund is aimed at reducing the rate at which it depends on the spot market, as well as addressing concerns about potential manipulation in unregulated Ethereum spot exchanges.
If approved by the SEC, the Hasdex Nasdaq ETH ETF will join a growing list of cryptocurrency-related ETFs available to investors, including institutional players, who may be more inclined to participate in the digital asset market through a regulated vehicle. Notably, Hashdex’s approach differs from recent filings as it would not depend on the Coinbase surveillance-sharing agreement.
Ark, 21Shares, and VanEck to Launch Spot ETH ETF
Recall that last week, the Chicago Board Options Exchange (CBOE) filed two applications with the SEC to list Ark 21Shares Ethereum ETF and VanEck Ethereum ETF investment products on the CBOE’s BZX exchange. By law, the SEC was given a maximum of 240 days after the confirmation of the application to make a ruling. However, the SEC is silent about the approval of any Ethereum ETFs thus far and is yet to approve a spot Bitcoin (BTC) ETF to date.
