Hashdex Submits Proposal for First-Ever Combined Bitcoin and Ethereum ETF

Jimmy Aki
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Hashdex submitted an application with the Securities and Exchange Commission (SEC) on June 18 for a combined spot Bitcoin and Ethereum exchange-traded fund (ETF). An approval would see Hashdex US ETFs become the first fund to directly hold both Bitcoin and Ether cryptos in the US market.

Hashdex US ETFs Receives Innovative Remarks From Enthusiasts

Hashdex officially filed a Form 19b-4 with Nasdaq for the Hashdex US ETF, which aims to track the Nasdaq Crypto Index (NCI), a market-capitalization weighted index. The final deadline for the US SEC verdict on the combined spot ETFs will be the first week of March 2025.

The fund’s composition would primarily consist of Bitcoin (70.54%) and Ethereum (29.46%) and hold cash reserves with Coinbase Custody and BitGo designated as custodians upon the fund’s launch.

The Hashdex US ETF, focusing exclusively on Bitcoin and Ethereum, explicitly states that it will not invest in other crypto assets such as “crypto securities, tokenized assets, or stablecoins.” This narrow focus ensures the fund remains aligned with the two leading cryptocurrencies by market cap.

Bloomberg ETF expert James Seyffart commented that the proposed ETF, being market cap-weighted, has the potential to include additional digital assets as it gain SEC approval.

The analyst further noted that Hashdex already operates a successful crypto index ETF in Brazil, known as HASH11, which predominantly comprises Bitcoin and Ethereum thus, a successful model makes it a logical step for Hashdex to introduce a similar offering to the US market.

Hashdex is required to submit and receive SEC approval on an S-1 application, while the SEC has 90 days to respond to the 19b-4 filing, during which it will accept comments from the public and other financial institutions regarding the proposal. This review period allows stakeholders to provide feedback and ensures a comprehensive evaluation of the ETF application.

It could be recalled that on May 23, the US SEC approved spot Ethereum applications from BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark, Invesco Galaxy, and Franklin Templeton to be listed in Nasdaq, CBOE, and NYSE.

Similar to Hashdex US ETFs, these issuers still need their S-1 registration statements approved by the US regulator before trading can begin.

Analyst Projects Spot Ether ETF to Launch on July 2nd

Meanwhile, Eric Balchunas, another Bloomberg analyst, suggested an estimated launch date of July 2nd based on minor feedback received by issuers. This timeline 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.

As the regulatory environment adapts, products like the Hashdex US ETFs could play an important role in providing investors with diversified exposure to the leading cryptocurrencies and drive broader adoption in the crypto market.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.