Brazilian asset management firm Hashdex has officially submitted a filing with the Securities and Exchange Commission (SEC) for a dual Bitcoin-Ethereum exchange-traded fund (ETF). If approved, this innovative ETF would be listed on the Nasdaq, making it accessible to a wide range of investors, from institutional players to retail participants.
Details of the ETF Proposal
According to the filing, the proposed ETF will offer investors 70.54% exposure to Bitcoin and 29.46% to Ethereum. This blend aims to provide a balanced investment option within the volatile cryptocurrency market. The SEC’s decision on the approval is expected by March 2025, as estimated by James Seyffart, a Senior ETF Analyst at Bloomberg Intelligence.
Laurent Kssis, an independent board member of Issuance Swiss AG, commented on the SEC’s evolving stance towards cryptocurrency, noting, “The race to being innovative continues where the regulator is in the process of accepting new tokens and ETH being the next on the list.”
Precedents in Europe
While Hashdex’s ETF proposal is groundbreaking within the U.S. market, similar products have already found success in Europe. Asset management firm 21Shares has been leading the charge with various exchange-traded products (ETPs) that track individual cryptocurrencies like Bitcoin and Ethereum, as well as diversified products bundling multiple digital assets.
In Germany, the Xetra electronic trading platform lists a variety of crypto ETPs from providers such as 21Shares and ETC Group. These products have been well-received, demonstrating strong investor demand for regulated and transparent ways to invest in digital assets.
Additionally, the Nordic Growth Market in Sweden and the SIX Swiss Exchange in Switzerland have embraced crypto ETPs, offering a range of such products. These European markets provide a useful case study on how these financial instruments can be successfully integrated into traditional financial ecosystems.
Kssis further explained the strategic advantage, stating, “We have seen such exposure or baskets in Europe back in 2019 in the form of an ETP so it’s an obvious proposition to suggest it in the U.S. and be prepared once the underlying has been approved.” He emphasized that positioning as first movers is crucial for issuers looking to capitalize on emerging opportunities.
Significance of Hashdex’s Filing
Hashdex’s ETF filing is particularly noteworthy given the SEC’s historically cautious approach towards crypto ETFs. This move signals a potential shift in the regulatory landscape, which could pave the way for more innovative financial products in the U.S. market.
If approved, Hashdex’s dual Bitcoin-Ethereum ETF would not only provide a diversified investment option but also enhance the accessibility and appeal of cryptocurrency investments to a broader audience.
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