Hashdex Submits Application to the SEC for a Combined Spot Ethereum and Bitcoin ETF

In a significant development within the cryptocurrency industry, asset manager Hashdex recently submitted an application to the US Securities and Exchange Commission (SEC) for a combined spot Ethereum and Bitcoin ETF.

Asset manager Hashdex has submitted an application to the US Securities and Exchange Commission (SEC) for a combined spot Ethereum and Bitcoin ETF.

According to Bloomberg ETF expert James Seyffart, the proposed ETF would be market cap-weighted and could potentially accommodate additional digital assets as they gain approval from the SEC.

“It would be a broad-based ETF that tracks the overall performance of a basket of crypto assets, offering investors a convenient and efficient way to gain exposure to the crypto market,” Seyffart explained.

The filing with the SEC states that Hashdex plans to use the services of at least two custodians, Coinbase and BitGo, to ensure the safe storage of the underlying assets.

While spot Ethereum ETFs in the US are yet to receive full approval from the SEC, Bloomberg analyst Eric Balchunas has suggested an estimated launch date of July 2nd based on minor feedback received by issuers.

This indicates that the SEC's review process for spot Ethereum ETFs is nearing completion, setting the stage for potential market expansion and increased investment opportunities.

Hashdex’s decision to launch a joint Ethereum and Bitcoin ETF aligns with their belief that as cryptocurrencies gain mainstream acceptance, new assets will emerge to disrupt the market share of Bitcoin and Ethereum.

In a recent blog post, Hashdex asserted that "crypto indices are the next frontier for ETFs." The asset manager highlighted the benefits of offering a diverse basket of crypto assets through an index-based approach.

“By providing investors with exposure to a broad range of crypto assets, crypto indices stand poised to become a powerful tool for capturing the growth potential of these alternative digital assets,” the blog post reads.

Moreover, Hashdex pointed to the success of crypto index ETFs in Brazil, where they have surpassed single-asset products in terms of trading volume and assets under management.

“The preference for crypto index ETFs over single-asset ETFs in Brazil is a testament to the benefits of diversification and the role of regulated ETF structures in catering to the needs of investors,” the blog post further noted.

Anticipating this trend to expand to Europe and eventually the US, Hashdex stated that "evolving regulations and demand from professional investors and wealth managers favor diversified exposure."

Highlighting the advantages of crypto indices for investors, Hashdex mentioned risk mitigation, transparency, standardization, and a time-tested methodology.

“The crypto market remains a complex landscape prone to volatility, and this will not change any time soon. Identifying individual winners and losers has always been a challenge in traditional markets, and becomes even more so with an emerging asset class like crypto,” the blog post reads.

“However, crypto indices offer a standardized approach to capturing overall market performance, serving as a guidepost in the ever-evolving digital asset landscape,” the blog post concluded.

The filing by Hashdex for a joint Ethereum and Bitcoin ETF marks a significant development in expanding the accessibility of crypto investments. With the potential approval of spot Ethereum ETFs and the increasing adoption of diversified crypto index strategies, the stage is set for a brighter future for investors seeking exposure to the digital asset space.

News source：https://www.kdj.com/cryptocurrencies-news/articles/hashdex-submits-application-combined-spot-ethereum-bitcoin-etf.html

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