Hashdex Files for Combined Spot Bitcoin and Ethereum ETF with SEC

TLDR

• Hashdex has filed an application with the SEC for a combined spot Bitcoin and Ethereum ETF called the Hashdex Nasdaq Crypto Index US ETF.
• The proposed ETF would be the first to directly hold both spot Bitcoin (70.54%) and Ethereum (29.46%) in the U.S. market.
• The ETF would track the Nasdaq Crypto Index (NCI) and follow a passive investment strategy, aiming to mirror the market’s performance.
• The filing comes amid recent approvals of spot Bitcoin ETFs and initial approvals of spot Ethereum ETFs by the SEC.
• The proposed ETF could potentially incorporate additional crypto assets in the future if they meet specific criteria, such as being listed on U.S.-regulated platforms.

Hashdex, a Brazil-based crypto asset manager, has filed an application with the Securities and Exchange Commission (SEC) for a combined spot Bitcoin and Ethereum exchange-traded fund (ETF).

If approved, the Hashdex Nasdaq Crypto Index US ETF would be the first fund to directly hold both of the leading cryptocurrencies in the American market.

The proposed ETF, which was filed via Form 19b-4 with the Nasdaq, would track the Nasdaq Crypto Index (NCI), a market-capitalization weighted index.

The fund’s composition would primarily consist of Bitcoin (70.54%) and Ethereum (29.46%), reflecting the relative weightings of these dominant cryptocurrencies. Additionally, the ETF would hold cash, with Coinbase Custody and BitGo designated as custodians upon launch.

Update: A dual Ethereum and #Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn’t be a surprise to anyone — makes a lot of sense.

Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM

— James Seyffart (@JSeyff) June 18, 2024

Hashdex’s filing comes amidst a year of milestones for crypto funds in the U.S. The SEC approved the first spot Bitcoin ETFs in January, while spot Ethereum ETFs received initial approvals in late May. SEC Chair Gary Gensler recently indicated that he expects these Ethereum ETFs to begin trading this summer.

Although the Hashdex ETF currently focuses on Bitcoin and Ethereum, the filing clarifies that it would not invest in other crypto assets, such as “crypto securities, tokenized assets or stablecoins.” However, the index could potentially incorporate additional cryptocurrencies in the future, provided they meet specific criteria, such as being listed on U.S.-regulated platforms or serving as the underlying asset for derivative instruments on such venues.

Hashdex emphasizes a passive investment strategy for the ETF, aiming to track the NCI’s performance regardless of market direction. This approach signifies the company’s intention to provide investors with exposure to the overall cryptocurrency market represented by the index, rather than attempting to outperform it.

The final SEC approval deadline for the Hashdex application is expected to be around the first week of March 2025, according to Bloomberg ETF analyst James Seyffart. He also noted that the filing includes language that could allow the addition of other digital assets as they receive SEC approval.