Hashdex chooses BitGo as Bitcoin custodian for ETF amid growing optimism

Hashdex, a prospective Bitcoin exchange-traded fund (ETF) issuer, has made strategic changes in its paperwork, signaling a shift in its custodial arrangements and ETF nomenclature. This move follows the broader industry trend as various companies eagerly anticipate the approval of the first spot Bitcoin ETF in the United States early next year.

BitGo: An uncommon choice as custodian

Hashdex has diverged from the norm by selecting BitGo as its Bitcoin custodian, a departure from the majority of applicants who have aligned with crypto exchange Coinbase. This uncommon choice sets Hashdex apart in a landscape where Coinbase has been the custodian partner of choice for many. The decision to opt for BitGo is documented in an amended S-1 filing, highlighting the distinctive position Hashdex has taken in its preparations for the potential launch of its ETF.

Simultaneously, Hashdex has rebranded its Bitcoin Futures ETF to the Hashdex Bitcoin ETF, underscoring the company’s adaptability as it navigates the evolving regulatory landscape. This adjustment aligns with the proactive stance adopted by several ETF applicants who are refining their applications to meet the expectations of the U.S. Securities and Exchange Commission (SEC).

Meeting with the SEC fuels optimism for regulatory approval

The SEC recently engaged with representatives from a spectrum of ETF applicants, including industry heavyweights such as BlackRock, Valkyrie, Fidelity, Grayscale, and Ark. These discussions, documented in filings, have set a deadline of December 29 for final amendments to applications, intensifying the anticipation surrounding the regulatory fate of spot Bitcoin ETFs. Notably, the SEC has displayed receptivity to amendments, particularly those addressing operational nuances and outlining a commitment to cash creation in case of approval.

As various applicants strive to align their offerings with regulatory expectations, the industry is buzzing with heightened optimism that a regulatory green light for spot Bitcoin ETFs may be imminent. The deadline for the Ark 21Shares filing is January 10, 2024, adding a sense of urgency to the anticipation. Sources suggest that the SEC’s decision could be unveiled as early as the first few days of the new year, setting the stage for a potentially transformative development in the cryptocurrency investment landscape.

In conclusion, Hashdex’s choice of BitGo as custodian and the renaming of its ETF reflect the dynamic nature of the industry as companies position themselves for regulatory approval. The broader landscape, characterized by ongoing discussions with the SEC and strategic amendments, underscores the growing optimism that a significant milestone in the form of a spot Bitcoin ETF approval may be on the horizon. Investors and industry stakeholders keenly await further developments as the regulatory landscape evolves.

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