NASDAQ Introduces Unique Ethereum ETF Proposal
NASDAQ has submitted an application to the US Securities and Exchange Commission (SEC) to list and trade shares of the Hashdex Nasdaq Ethereum ETF. This ETF will be managed by Toroso Investments LLC and will hold both Ether futures contracts and Spot Ether. This approach differs from traditional asset managers who have applied for either a Spot Ether ETF or Ether futures ETF. Hashdex believes that combining both types of contracts will mitigate the risk of market manipulation and provide a regulated product that tracks Ethereum’s price. In order to meet surveillance-sharing agreement requirements, Nasdaq will use the Chicago Mercantile Exchange (CME) to track Ethereum’s price. The fund will also hold physical Ether, purchasing tokens through the CME Market’s Exchange for Physical (EFP) transactions.
Concerns Over Coinbase Labeling and Influence
Hashdex’s labeling of Coinbase as an “unregulated spot exchange” in their application raises concerns about the SEC’s decision-making process. Other asset managers, including Ark Invest, have chosen Coinbase as their custodian, sparking controversy. The SEC may be hesitant to approve applications involving Coinbase due to its ongoing lawsuit against the crypto exchange. While Hashdex’s approach is innovative, it is important to consider its potential impact on other applications and the broader crypto industry.
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