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4 months ago
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Hashdex, a cryptocurrency asset management platform based in Brazil, has filed for approval of a dual ETF that includes both Bitcoin and Ethereum, the world’s largest cryptocurrencies. This move comes as the race for Spot Ethereum ETFs gains momentum, with expectations for an official launch before the end of the year.
Hashdex Proposes Combined Bitcoin and Ethereum ETFs
On June 18, Bloomberg analyst James Seyffart revealed via X (formerly Twitter) that Hashdex submitted a 19b-4 filing for a combined Bitcoin and Ethereum ETF. This follows the company’s earlier decision to withdraw its Spot Ethereum ETF application on May 24, just a day after the SEC approved ETH ETF applications.
Hashdex is taking an innovative approach by filing for a dual Bitcoin and Ethereum ETF instead of the more traditional individual ETFs. If approved by the United States Securities and Exchange Commission (SEC), Hashdex would become the first provider of a Spot Bitcoin and Ethereum ETF.
The dual crypto ETF proposed by Hashdex will be market-weighted, based on the total market capitalization of both Ethereum and Bitcoin. According to the filing, Bitcoin will account for 70.54% of the combined ETF, while Ethereum will make up 29.46%. The filing also allows for the inclusion of other crypto assets, provided they meet specific criteria.
Strategic Alignment with Hashdex’s Goals
Seyffart noted that Hashdex already manages a diverse crypto index ETF in Brazil, where Bitcoin and Ethereum constitute 90% of its holdings. Therefore, the filing for a dual crypto ETF in the United States is in line with Hashdex’s strategic objectives.
The Bloomberg analyst also disclosed that Hashdex plans to use at least two custodians for its Bitcoin and Ethereum ETF, having initiated agreements with Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc. to manage the assets.
Timeline for Ethereum Spot ETFs
A crypto analyst known as ‘Crypto Capo’ on X predicted that approval and trading of Ethereum Spot ETFs would begin in the coming weeks. This aligns with Bloomberg Senior Analyst Eric Balchunas’s forecast that Ethereum Spot ETFs will debut by July 2, 2024.
While the SEC has approved 19b-4 forms for eight Spot ETH ETFs, the regulator still needs to approve S-1 registration statements to commence trading. SEC Chairman Gary Gensler indicated that S-1 approvals are likely by the end of summer.
Seyffart also mentioned that the SEC’s decision deadline for Hashdex’s combined Bitcoin and Ethereum ETF is around the first week of March 2025.
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