Asset Manager Proposes Combined Bitcoin and Ethereum ETF
An asset manager, Hashdex, recently submitted a proposal for a new exchange-traded fund (ETF) to the US Security and Exchange Commission (SEC). The ETF, known as Hashdex Nasdaq Crypto Index US ETF, is designed to offer investors direct exposure to two of the most prominent cryptocurrencies in the market, Bitcoin (BTC) and Ethereum (ETH).
Exploring Hashdex’s Latest Spot Crypto ETF Filing
The recent 19b-4 filing revealed key details about the proposed ETF:
- The ETF’s assets will primarily consist of Bitcoin and Ethereum, with cash reserves allocated for covering expenses only.
- It will follow a passive investment strategy to track the Nasdaq Crypto US Settlement Price Index (NCIUSS).
- This strategy aims at replicating the index without trying to outperform it, providing a straightforward investment option for both experienced and novice traders.
The ETF plans to utilize Coinbase and BitGo for securing custody of its Bitcoin and Ethereum holdings. Additionally, the filing specified the constituent weights as of May 27, 2024, with BTC at 70.54% and ETH at 29.46%. Hashdex’s filing aligns with other potential spot Ethereum ETF issuers, ensuring no engagement in Ethereum staking by the fund or its affiliates. The SEC has 90 days to evaluate the proposal, with a decision expected by March 2025.
Insights from ETF Analysts and Community Response
James Seyffart, an ETF analyst at Bloomberg Intelligence, shared his thoughts on Hashdex’s filing:
He emphasized the market cap-weighted structure and the possibility of including other SEC-approved digital assets in the future.
Despite some skepticism within the crypto community regarding the combination of Bitcoin and Ethereum in the ETF, Seyffart defended the strategy, highlighting its benefits for investors seeking diversified exposure to digital assets. Approval of Hashdex Nasdaq Crypto Index US ETF would signify a significant milestone in the spot crypto fund segment.
Anticipation for Spot Ethereum ETFs
Currently, the crypto market is eagerly anticipating the approval of spot Ethereum ETFs. SEC Chairman Gary Gensler hinted at potential approval for these ETFs over the summer, although no specific timeline was provided for their trading commencement. ETF analyst Eric Balchunas predicted that these funds could start trading as early as July 2.
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