Hashdex Files For Combined Spot Bitcoin And Ethereum ETF

Hashdex has filed for a combined spot Bitcoin BTC/USD and Ethereum ETH/USD ETF, called the Hashdex Nasdaq Crypto Index US ETF.

This new proposal, detailed in a 19b-4 filing with Nasdaq, represents a notable development in the ongoing integration of digital assets into mainstream financial products.

Market Cap Weighting And Composition

The proposed ETF will be market cap-weighted, with Bitcoin constituting 70.54% and Ether making up 29.46% of the fund.

This weighting reflects the dominant positions of BTC and ETH within the cryptocurrency market, aiming to offer investors a balanced exposure to the two leading digital assets.

Regulatory Milestones

The approval of this combined ETF would mark another milestone in a year that has already seen several crypto fund firsts.

The first US spot Bitcoin ETFs received approval from the Securities and Exchange Commission (SEC) in January, a landmark moment for crypto investment in the US.

Spot Ethereum ETF launches are also imminent, with the SEC currently working with fund issuers to finalize these funds’ registration statements.

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Investment Strategy And Restrictions

The Hashdex Nasdaq Crypto Index US ETF is designed to invest solely in BTC and ETH, explicitly stating that it will not include "crypto securities, tokenized assets or stablecoins."

The filing also notes that crypto assets meeting specific criteria, such as being listed on a U.S.-regulated platform or serving as the underlying asset for a derivative instrument listed on such a venue, could potentially be added to the index in the future.

Hashdex intends to adhere to a passive investment strategy that aims to track the changes in the index, regardless of whether it rises or falls.

"The sponsor will employ a passive investment strategy that is intended to track the changes in the index regardless of whether the index goes up or goes down, meaning that the sponsor will not try to ‘beat' the index," the filing states.

Historical Context and Future Plans

Previously, Hashdex sought to transition its Bitcoin futures ETF to one that also held BTC directly in anticipation of the U.S. spot BTC fund launches in January.

However, it was unable to do so when its competitors debuted their spot products on Jan. 11, gaining the capability only later.

For more insights into the evolving world of digital assets, the Benzinga Future of Digital Assets event on Nov. 19 will be an essential platform for discussing these significant developments and their implications for the market.

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