Hashdex has put forth a proposal to the United States Securities and Exchange Commission (SEC) on June 18 to launch a unique exchange-traded fund (ETF) on the Nasdaq exchange that combines both Bitcoin (BTC) and Ether (ETH).
The suggested ETF would allocate the crypto assets based on their market capitalizations, with Bitcoin accounting for 70.54% and Ether for 29.46% as of May 27. Its investment strategy would be passive, mirroring the daily market movements of the Nasdaq Crypto US Settlement Price Index without attempting to outperform it.
An ETF that offers the best of both worlds, as noted by analyst James Seyffart. This ETF would focus solely on BTC and ETH, excluding other spot assets. However, it was mentioned that crypto assets must meet certain criteria to be included, such as being listed on a U.S.-regulated digital asset trading platform or being the underlying asset for a derivative instrument on a U.S.-regulated derivatives platform.
Both Coinbase and BitGo are set to act as custodians for the BTC and ETH assets, providing segregated accounts for individual shareholders.
Hashdex, a Brazil-based investment manager, previously filed for an ETH ETF with the SEC but later retracted its application. Their indexed crypto ETF in Brazil includes nine coins, with BTC and ETH making up nearly 92% of the total value. Their U.S.-traded spot BTC ETF involves up to 5% BTC futures contracts and acquires the spot asset on the CME.
Hashdex still has to file an S-1 application and obtain SEC approval. The agency has a 90-day period to respond to the 19-b4, during which feedback from the public and financial institutions will be considered. Seyffart anticipates a final decision from the SEC on the fund by March 2025.
In conclusion, Ethereum’s recent decline may actually present an opportunity, according to Dynamo DeFi and X Hall of Flame.