Ethereum

Spot Ethereum ETFs Race Heats Up With Double-Edged Filing From Hashdex

Published

5 months ago

June 19, 2024

Brazil-based cryptocurrency asset management platform, Hashdex has applied for the approval of a dual ETF, consisting of both Bitcoin and TH, the world’s largest cryptocurrencies. This development comes as the Spot Ethereum ETF race heats up in anticipation of an official debut before the end of the year.

Hashdex Files Combined Bitcoin And Ethereum ETFs

In a June 18 X (formerly Twitter) post, Bloomberg analyst James Seyffart unveiled 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, posting its notice of withdrawal one day after the SEC approved ETH ETF applications.

Hashdex is taking a new approach in the cryptocurrency ETF market, choosing to file a dual Bitcoin and Ethereum ETF, instead of the conventional 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 has also disclosed that Hashdex’s dual crypto ETF will be a market-weighted asset. This means that the ETF will be weighted based on the total market capitalization of both Ethereum and Bitcoin.

In the filing, the percentage of Bitcoin within the combined ETF will account for 70.54%, while Ethereum will remain at 29.46%. Hashdex’s filing has also disclosed that other crypto assets can be added to its Bitcoin and Ethereum dual ETF. However, only assets that meet certain criteria and are eligible for inclusion will be incorporated.

Seyffart also noted that Hashdex already manages 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 for a dual crypto ETF in the United States comes as no surprise and effectively aligns with Hashdex’s strategic future goals.

The Bloomberg analyst has also disclosed that Hashdex will be utilizing at least two custodians for its Bitcoin and Ethereum ETF. The filing revealed that the company has begun plans to enter an agreement with Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc to keep custody of all the trust’s Bitcoin and Ethereum assets.

When Will EthETHereum Spot ETFs Start Trading?

A crypto analyst identified as ‘Crypto Capo’ on X has predicted that Ethereum Spot ETFs S-1 approval and official trade will commence in the next few weeks. This prediction aligns with that of Bloomberg Senior Analyst, Eric Balchunas who has forecasted that Ethereum Spot ETFs would make its debut by July 2, 2024.

While the US SEC has approved 19b-4 forms of eight Spot ETH ETFs, the regulator still needs to approve S-1 registration statements to kickstart ETH ETF trading. Gary Gensler, the Chairman of the SEC, revealed last week that S-1 approvals would likely come sometime at the end of summer.

Meanwhile, Seyffart has revealed that the deadline for the SEC’s approval of Hashdex’s combined Bitcoin and Ethereum ETF is scheduled around the first week of March 2025.