Hashdex Advances Crypto ETF Proposal Amid Regulatory Developments
According to Cointelegraph, asset manager Hashdex has submitted a second amended application for its proposed exchange-traded fund (ETF), aimed at providing a comprehensive cryptocurrency portfolio. This development, detailed in a regulatory filing on November 25, marks ongoing progress with the United States Securities and Exchange Commission (SEC), the country's primary financial regulatory body. Hashdex initially amended its S-1 filing in October after the SEC requested additional time to decide on the ETF's trading authorization.
The Hashdex Nasdaq Crypto Index US ETF is set to initially include Bitcoin (BTC) and Ether (ETH), the only assets currently part of the Nasdaq Crypto US Index. However, the ETF may eventually broaden its scope to incorporate more digital currencies, as indicated in the filing. Industry experts suggest that crypto index ETFs are becoming a significant focus for issuers, following the listing of ETFs holding BTC and ETH earlier this year. Katalin Tischhauser, head of investment research at crypto bank Sygnum, noted that index ETFs are efficient for investors, drawing parallels to the S&P 500 ETF.
The SEC's approach to cryptocurrency oversight appears to be evolving, particularly following the US elections on November 5, where Donald Trump emerged victorious. Trump has expressed intentions to transform the US into a leading hub for cryptocurrency. On November 21, SEC Chair Gary Gensler, known for his stringent regulatory stance on cryptocurrencies, announced his departure from the agency effective January 20, 2025. This decision aligns with Trump's previous campaign promise to remove Gensler to appeal to crypto supporters.
In addition to Hashdex, other asset managers like Franklin Templeton and Grayscale are also pursuing the launch of crypto index ETFs. The Franklin Crypto Index ETF aims to track the CF Institutional Digital Asset Index, which, similar to the Nasdaq Crypto US Index, currently includes only BTC and ETH. Meanwhile, Grayscale's Digital Large Cap Fund, established in 2018 but not yet exchange-traded, offers a diversified crypto index portfolio featuring BTC, ETH, Solana (SOL), and XRP (XRP), among others. Grayscale's fund stands out among proposed index ETFs by including a variety of alternative cryptocurrencies.