Hashdex Chooses BitGo as Custodian amidst SEC’s Move to “Cash Create” Model for Bitcoin ETFs

Cino Gaperi

Hashdex Chooses BitGo as Custodian amidst SEC's Move to "Cash Create" Model for Bitcoin ETFs

Dec 23, 2023 1:59 AM

Hashdex’s Updated Custodial Strategy

Hashdex has chosen BitGo as its custodian, a change influenced by recent SEC guidelines on Bitcoin ETF structures. This decision is a departure from industry norms, with most competitors favoring Coinbase or self-custody options. Hashdex’s unique approach is making waves in the evolving ETF landscape.

SEC’s Emphasis on “Cash Create” Model

Following discussions with Bitcoin ETF applicants, the SEC is pushing for the “Cash Create” model in ETF applications, setting a December 29 deadline for final amendments. This model is different from previous “in-kind redemptions,” signaling a significant shift in regulatory expectations.

Ark 21Shares Adapts to Regulatory Shift

In response to the SEC’s guidance, Ark 21Shares has amended its S-1 form to adopt the “Cash Create” model. Despite no apparent advantage for being the first mover, Ark 21Shares is optimistic about a favorable outcome by the SEC’s January 10, 2024, decision deadline.

Hot Take: Navigating the Evolving Bitcoin ETF Landscape

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With regulatory shifts and strategic decisions shaping the future of Bitcoin ETFs, the industry awaits critical decisions expected by January 10, 2024. The adoption of the “Cash Create” model and Hashdex’s updated custodial strategy exemplify the changes occurring in this space.

Cino Gaperi

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Cino Gaperi stands out as a prominent crypto analyst, accomplished researcher, and adept editor, making significant contributions to the field of cryptocurrency. With a strong background in crypto analysis and research, Cino’s insights delve deep into the intricate aspects of digital assets, appealing to a diverse audience. His keen analytical skills are complemented by his editorial proficiency, allowing him to distill complex crypto information into easily digestible content. Cino’s contributions serve as a valuable compass for both seasoned enthusiasts and newcomers, guiding them through the dynamic landscape of cryptocurrencies with well-researched perspectives. With a commitment to precision, he empowers informed decision-making within the ever-evolving crypto sphere.