Digital asset management firm Hashdex filed an S1 registration form with the U.S. Securities and Exchange Commission (SEC) on June 24 to offer exchange-traded funds (ETFs) tracking multiple digital assets. The proposed Hashdex Nasdaq Crypto Index U.S. ETF aims to provide investors with diversified exposure to digital assets.
The initial filing indicates that the ETF will track Bitcoin and Ethereum upon approval, with plans to incorporate additional digital assets. This ETF offers crypto investors a way to diversify their investments without needing self-custody. The approval process by the U.S. SEC includes the requirement for a 19b-4 document submission to add other crypto assets to the ETF.
Update: @hashdex has filed an S-1 for their Crypto Index ETF. Will start with just #Bitcoin & #Ethereum but can add other assets if and when approved by the SEC. https://t.co/W3uHyv9MYn pic.twitter.com/DFXouwu4IK
— James Seyffart (@JSeyff) July 24, 2024
Approval timeline and analyst insights
Bloomberg Intelligence crypto analyst James Seyffart revealed that the U.S. SEC has until March 2025 to approve or deny the crypto index ETF. Seyffart highlighted that the Hashdex Nasdaq Crypto Index U.S. ETF would be the first dual/multi-spot ETF in the United States.
On June 18, Hashdex proposed creating a combined spot Bitcoin and Ether ETF on the Nasdaq exchange. This ETF aims to balance crypto assets based on their market capitalization. The SEC acknowledged the filing in late June, and if approved, Bitcoin would constitute 76.3% of the ETF, while Ether would make up 23.7%.
Asset tracking and custody arrangements
Hashdex’s proposed ETF will track assets listed on the Nasdaq Crypto U.S. Settlement Price Index. This index includes digital assets such as Chainlink (LINK), Uniswap (UNI), Litecoin (LTC), and Filecoin (FIL). After initial approval, Hashdex could submit additional 19b-4 filings to include these assets in its ETF.
James Seyffart stated, “Hashdex Nasdaq Crypto Index US ETF is designed to provide investors with price exposure to certain crypto assets, namely those included in the Nasdaq Crypto US Settlement Price Index.”
Hashdex has selected Coinbase Custody and BitGo to hold Bitcoin and Ethereum. The digital assets will be stored in multiple accounts to ensure the safety and security of shareholders’ investments.
Recent developments and market impact
On July 23, Ether’s spot ETFs officially launched in the U.S. on the first trading day and witnessed a combined net inflow of $590 million, excluding outflows from the Grayscale Ethereum Trust. The U.S. regulator had previously approved 11 Bitcoin spot ETFs, which saw inflows exceeding $16 billion in just six months. These ETFs have outperformed analysts’ expectations, reflecting strong investor interest and confidence in cryptocurrency-based financial products.
The Hashdex filings mark a significant step towards providing diversified and regulated investment options in the crypto market. If approved, the Hashdex Nasdaq Crypto Index U.S. ETF will offer investors a structured way to gain exposure to various digital assets, enhancing the appeal and accessibility of cryptocurrency investments.
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