Cryptocurrency asset management platform based in Brazil, Hashdex has sought approval for a dual ETF, consisting of both Bitcoin and TH, the world’s largest cryptocurrencies. This development comes at a time when Spot the Ethereum ETF Race is warming up in anticipation of an official debut before the end of the year.
Hashdex files combined Bitcoin and Ethereum ETFs
In an X of June 18 (formerly Twitter) job, Bloomberg analyst James Seyffart revealed Hashdex’s recent 19b-4 filing for a combined Bitcoin and Ethereum ETF. Earlier on May 24, the crypto asset management company pulled back its Spot Ethereum ETF application, issuing its takedown notice a day after the SEC approved the ETH ETF applications.
Hashdex is taking a new approach to the cryptocurrency ETF market, choosing to file a dual Bitcoin and Ethereum ETF, instead of the classic individual ETF. According to Seyffart, if the United States Securities and Exchange Commission (SEC) approves Hashdex’s new ETF application, then the crypto asset management company will be the first-ever Spot Bitcoin and ETH ETF provider.
The Bloomberg analyst also revealed that Hashdex’s dual crypto ETF would be a market-weighted asset. This means that the ETF will be weighted according to the total market capitalization of the two Ethereum and Bitcoin.
In the filing, the percentage of Bitcoin within the combined ETF will represent 70.54%, while Ethereum will remain at 29.46%. Hashdex’s filing also revealed that other crypto assets may be added to its dual Bitcoin and Ethereum ETF. However, only assets meeting certain criteria and eligible for inclusion will be incorporated.
Seyffart too note that Hashdex already runs a crypto index ETF in Brazil. This ETF includes a diverse range of crypto assets, with Bitcoin and ETH making up 90% of its holdings. As a result, the asset management firm’s filing of a dual crypto ETF in the United States comes as no surprise and indeed aligns with Hashdex’s future strategic goals.
The Bloomberg analyst also disclosed that Hashdex will use at least two custodians for its Bitcoin and Ethereum ETFs. The filing revealed that the company began considering entering into a deal with Coinbase Custodial Trust CompanyLLC and BitGo Trust Company, Inc to maintain custody of all Bitcoin and Ethereum assets of the trust.
When will EthETHereum Spot ETFs start trading?
A crypto analyst identified as “Crypto Capo” on predicted that S-1 approval and official trading of Ethereum Spot ETFs will begin in the coming weeks. This prediction aligns with that of Bloomberg’s senior analyst, Eric Balchunas who predicted that Ethereum Spot ETFs make his debut by July 2, 2024.
Although the US SEC has approved Forms 19b-4 of eight Spot ETH ETFsthe regulator still needs to approve S-1 registration statements to restart trading of ETH ETFs. Gary GenslerSEC Chairman, revealed last week that S-1 approvals would likely come in late summer.
Meanwhile, Seyffart revealed that the deadline for SEC approval of Hashdex’s combined Bitcoin and Ethereum ETF is expected around the first week of March 2025.
Featured image created with Dall.E, chart from Tradingview.com
