As a seasoned financial analyst with extensive experience in the crypto market, I have been closely monitoring the latest developments in the world of cryptocurrency exchange-traded funds (ETFs). Hashdex, a well-known name in the crypto asset management space, has recently taken a significant step forward by filing its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for its Hashdex Nasdaq Crypto Index US ETF. This potential first index-based crypto ETF in the U.S. aims to track some digital assets in the Nasdaq Crypto US Settlement Price Index, starting with Bitcoin (BTC) and Ethereum (ETH).
Hashdex, a cryptocurrency management company, has submitted an application, known as an S-1 registration statement, to the United States Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) based on the Hashdex Nasdaq Crypto Index.
Significantly, the company intends to pioneer the creation of the initial index-based cryptocurrency Exchange-Traded Fund (ETF) in the United States. This ETF will trace a selection of digital assets within the Nasdaq Crypto US Settlement Price Index.
Hashdex’s Crypto ETF Awaits SEC Nod
If a cryptocurrency other than Bitcoin and Ethereum is deemed eligible for inclusion in the index by the sponsor, as mentioned in their S-1 filing, they will adopt a replication method using samples instead. This approach ensures that the proportion of Bitcoin and Ethereum in the index remains unchanged.
If the Trust chooses to resume a complete replication strategy, it would be required to submit a rule modification request under Rule 19b-4 of the Exchange Act to the Securities and Exchange Commission (SEC), in order to adjust its listing guidelines for incorporating new Index Constituents.
In a recent post on X, James Seyffart of Bloomberg ETF Analysis indicated that the fund may incorporate additional assets if it obtains SEC authorization.
New development: Hashdex has submitted an application, in the form of an S-1 filing, to the Securities and Exchange Commission (SEC) for launching a Crypto Index ETF. Initially, it will include only Bitcoin and Ethereum as its constituents. However, there’s a possibility of adding more assets if given the green light by the SEC.
— James Seyffart (@JSeyff) July 24, 2024
Five weeks after submitting its 19b-4 form on June 18, Hashdex filed an S-1 document detailing the security it plans to issue. The U.S. securities regulatory body acknowledged receipt of this filing towards the end of June. Once both applications are granted approval, the cryptocurrency ETF from Hashdex can become officially listed and traded on the market.
Hashdex’s ETF will distribute its weightings according to the free market caps of the included cryptocurrencies in their listing. At present, this allocation stands at approximately 76.3% for Bitcoin and 23.7% for Ethereal.
Among the extra digital currencies, like Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL), are currently part of the Nasdaq Crypto US Settlement Price Index. These digital assets could potentially be considered for inclusion in Hashdex’s ETF at a later stage.
Hashdex’s Filing Excludes ETH Staking
In its S-1 filing, Hashdex made it clear that it has no plans to incorporate Ether staking in its merged Bitcoin and cryptocurrency exchange-traded fund (ETF). On the other hand, BitGo and Coinbase Custody have been appointed as custodians for Hashdex’s Bitcoin and Ethereum holdings. These assets will be safeguarded in separate accounts for each shareholder.
Two days after the introduction of eight Ether spot exchange-traded funds (ETFs) by asset managers on U.S. stock markets, the combined inflows on their first trading day reached an impressive $590.7 million. This amount surpassed industry analysts’ expectations, with the Grayscale Ethereum Trust’s outflows not considered in this figure.
I analyzed the market trends and noticed a shift a day after my initial assessment. Contrary to my previous expectations, outflows became the dominant force. As a result, ETH‘s performance took a hit, with the asset dropping by 10% at one point, reaching below $3,150.
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2024-07-26 01:14