Hashdex Files for Combined Bitcoin and Ethereum Spot ETFs with SEC

TLDR

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

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

If approved, the Hashdex Nasdaq Crypto Index US ETF would be the first fund to directly hold the two major cryptocurrencies in the US market.

The proposed ETF, which was filed via Form 19b-4 with Nasdaq, would track the Nasdaq Crypto Index (NCI), a market cap-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 liquidity, with Coinbase Custody and BitGo designated as custodians at launch.

Hashdex’s filing comes amid a year of milestones for crypto funds in the United States. The SEC approved the first Bitcoin spot ETFs in January, while the Ethereum spot ETFs received the first approvals in late May. SEC Chairman 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 will not invest in other crypto assets, such as “crypto securities, tokenized assets, or stablecoins.” However, the index could potentially incorporate other cryptocurrencies in the future, provided they meet specific criteria, such as being listed on regulated platforms in the United States or serving as an underlying asset to derivative instruments on these platforms.

Hashdex emphasizes a passive investment strategy for the ETF, aiming to track the performance of the NCI 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 app 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 other digital assets to be added as they receive SEC approval.

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