Key Points
Hashdex, a cryptocurrency asset management platform based in Brazil, has submitted an application for a dual ETF that includes Bitcoin and Ethereum, the two largest cryptocurrencies globally.
This move comes as anticipation grows for the Spot Ethereum ETF’s official debut, expected before the year’s end.
Details of the Hashdex Application
On June 18, Bloomberg analyst James Seyffart announced via a post on X (formerly Twitter) that Hashdex had filed a 19b-4 for a combined Bitcoin and Ethereum ETF.
Previously, on May 24, Hashdex had withdrawn its Spot Ethereum ETF application, a day after the SEC approved ETH ETF applications.
Hashdex is adopting a unique strategy in the cryptocurrency ETF market by filing for a joint Bitcoin and Ethereum ETF, rather than the traditional individual ETF.
If the US Securities and Exchange Commission (SEC) approves Hashdex’s new ETF application, it will be the inaugural provider of a Spot Bitcoin and ETH ETF.
Seyffart also revealed that Hashdex’s dual crypto ETF would be a market-weighted asset, meaning it would be weighted based on the total market capitalization of both Ethereum and Bitcoin.
The filing specifies that Bitcoin will make up 70.54% of the combined ETF, with Ethereum accounting for the remaining 29.46%.
Hashdex’s filing also indicates that other crypto assets may be added to its Bitcoin and Ethereum dual ETF, provided they meet specific criteria and are eligible for inclusion.
It’s worth noting that Hashdex already manages a crypto index ETF in Brazil, which includes a variety of crypto assets, with Bitcoin and Ethereum constituting 90% of its holdings.
Hashdex’s application for a dual crypto ETF in the US aligns with the firm’s strategic future goals.
Furthermore, Hashdex will employ at least two custodians for its Bitcoin and Ethereum ETF, as per Seyffart.
The filing shows that the company is planning to enter into an agreement with Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc to maintain custody of all the trust’s Bitcoin and Ethereum assets.
Meanwhile, a crypto analyst known as ‘Crypto Capo’ has predicted that Ethereum Spot ETFs S-1 approval and official trading will start in a few weeks.
This prediction coincides with Bloomberg Senior Analyst, Eric Balchunas’s forecast that Ethereum Spot ETFs would debut by July 2, 2024.
Although the US SEC has approved 19b-4 forms for eight Spot ETH ETFs, S-1 registration statements still need to be approved to initiate ETH ETF trading.
SEC Chairman Gary Gensler stated last week that S-1 approvals would likely arrive towards the end of summer.
Lastly, Seyffart revealed that the deadline for the SEC’s approval of Hashdex’s combined Bitcoin and Ethereum ETF is set for the first week of March 2025.
