Sokipiriye Dokubo
Hashdex, a leading digital asset management company, is moving forward with plans to launch a combined spot Bitcoin and Ether exchange-traded fund (ETF) in the United States.
The company recently filed an S-1 registration statement on June 24 for its Hashdex Nasdaq Crypto Index US ETF. This ETF is designed to mirror specific cryptocurrency assets within the Nasdaq Crypto US Settlement Price Index, showcasing the performance of a significant portion of the digital asset market.
Initially, the ETF will include Bitcoin (BTC) and Ether (ETH). However, there is a possibility of adding more cryptocurrencies in the future pending regulatory approvals, according to the S-1 filing.
If other cryptocurrencies besides Bitcoin and Ether meet the criteria for inclusion in the Index, Hashdex would shift to a sample replication strategy, maintaining Bitcoin and Ether in the same proportions dictated by the Index, as stated in the filing.
In case of changes, Hashdex would submit a 19b-4 form to seek approval for adjusting the ETF’s cryptocurrency holdings.
The filing comes shortly after Hashdex submitted its 19b-4 form on June 18, which was accepted by the US Securities and Exchange Commission (SEC) in late June.
Upon approval of both filings, the combined cryptocurrency ETF could potentially become the first of its kind to list and trade in the US.
The ETF’s assets would be weighted based on the relative free float market capitalizations of the included coins, with Bitcoin at 76.3% and Ether at 23.7% if approved today.
Furthermore, other cryptocurrencies like Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL) in the Nasdaq Crypto US Settlement Price Index could be considered for future inclusion in the ETF.
Notably, Hashdex has no plans to include Ether staking in its combined spot cryptocurrency ETF.
BitGo and Coinbase Custody will serve as custodians for Hashdex’s Bitcoin and Ether assets, holding them in segregated accounts designated for individual shareholders.
This S-1 filing coincided with the launch of spot Ether ETFs by eight asset managers on US stock exchanges, which collectively saw $590.7 million in inflows on the first trading day, surpassing industry predictions.