Hashdex, a leading crypto asset management firm, has made a significant move by filing its S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). This filing is part of their effort to launch the first index-based cryptocurrency ETF in the United States, which will initially hold Bitcoin and Ethereum.
Awaiting SEC Approval for Hashdex’s Crypto ETF
The proposed Hashdex Nasdaq Crypto Index US ETF aims to track digital assets included in the Nasdaq Crypto US Settlement Price Index. The S-1 filing indicates that if other cryptocurrencies become eligible, Hashdex will switch to a sample replication strategy while keeping Bitcoin and Ethereum in their specified proportions. To switch back to a full replication strategy, Hashdex would need to file a rule change under Rule 19b-4 of the Exchange Act with the SEC.
Bloomberg ETF Analyst James Seyffart commented on this development on X:
“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.”
The S-1 filing follows Hashdex’s 19b-4 form submission on June 18, which the SEC acknowledged in late June. If approved, this combined cryptocurrency ETF could soon be listed and traded.
ETF Composition and Future Additions
Hashdex’s ETF will have a market cap-weighted structure, currently allocating 76.3% to Bitcoin and 23.7% to Ethereum. The Nasdaq Crypto US Settlement Price Index also includes other cryptocurrencies such as Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL), which might be added to the ETF in the future.
Excluding ETH Staking
The S-1 filing clarifies that Ether staking will not be included in the ETF. BitGo and Coinbase Custody will serve as custodians for the Bitcoin and Ethereum assets, which will be stored in segregated accounts for individual shareholders.
This filing follows the launch of spot Ether ETFs by eight asset managers on U.S. stock exchanges, which saw a combined $590.7 million in inflows on their first trading day, exceeding industry expectations. However, the next day saw significant outflows, leading to a 10% drop in ETH’s price, falling below $3,150.
As Hashdex awaits the SEC’s decision, the crypto community is keenly observing the potential impact of this pioneering ETF on the market.
