Hashdex, a cryptocurrency asset management platform based in Brazil, has made a significant move by applying for the approval of a dual ETF that includes both Bitcoin and Ethereum, the two largest cryptocurrencies in the world. This development comes at a time when the race for Spot Ethereum ETFs is heating up, with anticipation for an official debut before the end of the year.
On June 18, Bloomberg analyst James Seyffart revealed Hashdex’s recent 19b-4 filing for a combined Bitcoin and Ethereum ETF. This filing came after the company withdrew its Spot Ethereum ETF application on May 24, following the SEC’s approval of ETH ETF applications.
Hashdex’s decision to file a dual Bitcoin and Ethereum ETF instead of individual ETFs marks a new approach in the cryptocurrency ETF market. If the SEC approves this new application, Hashdex will become the first provider of a Spot Bitcoin and ETH ETF. The ETF will be market-weighted, meaning it will be weighted based on the total market capitalization of Ethereum and Bitcoin.
According to the filing, the combined ETF will have 70.54% Bitcoin and 29.46% Ethereum, with the possibility of adding other crypto assets that meet specific criteria. Hashdex already manages a crypto index ETF in Brazil, with Bitcoin and ETH accounting for 90% of its holdings, indicating a strategic alignment with the company’s future goals.
Hashdex plans to use at least two custodians for its Bitcoin and Ethereum ETF, including Coinbase Custody Trust Company, LLC, and BitGo Trust Company, Inc, to ensure the security of the trust’s assets.
Crypto analyst ‘Crypto Capo’ has predicted that Ethereum Spot ETFs will receive S-1 approval and begin trading in the coming weeks. This prediction is in line with Bloomberg Senior Analyst Eric Balchunas, who forecasts the debut of Ethereum Spot ETFs by July 2, 2024. While the SEC has approved 19b-4 forms for eight Spot ETH ETFs, S-1 registration statements still need approval to initiate trading, as indicated by SEC Chairman Gary Gensler.
Seyffart has revealed that the deadline for the SEC’s approval of Hashdex’s combined Bitcoin and Ethereum ETF is set around the first week of March 2025. The cryptocurrency market continues to evolve, with new products and opportunities emerging for investors to participate in the growing digital asset space.
