Hashdex files for integrated Spot Bitcoin and Ethereum ETF with SEC

TLDR

Hashdex has filed an application with the SEC to acquire a hybrid Bitcoin and Ethereum ETF called the Nasdaq Crypto Index US ETF. The proposed ETF will be the first to directly hold both Bitcoin (70.54%) and Ethereum (29.46%) positions in the US market. The ETF tracks the Nasdaq Crypto Index (NCI) and follows a passive investment strategy with the aim of reflecting market performance. The filing comes amid recent SEC approvals of the Spot Bitcoin ETF and the Spot Ethereum ETF. The proposed ETF may include additional crypto assets in the future if certain criteria are met, such as US-controlled platforms.

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

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

The proposed ETF, filed with Nasdaq on Form 19b-4, tracks the Nasdaq Crypto Index (NCI), a market capitalization weighted index.

The fund's composition mainly consists of Bitcoin (70.54%) and Ethereum (29.46%), reflecting the relative weighting of these major cryptocurrencies. Additionally, the ETF will hold funds if Coinbase Custody and BitGo are designated as custodians at launch.

UPDATE: A dual Ethereum and #Bitcoin ETF file from @hashdex just dropped. It will be balanced on the market. It shouldn't come as a surprise to anyone – it makes a lot of sense.

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

— James Seyff (@JSeyff) June 18, 2024

The Hashdex filing comes in a year for crypto funds in the U.S. The SEC approved the first spot Bitcoin ETF in January, and spot Ethereum ETFs received initial 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 explains that it does not invest in other crypto assets such as “crypto securities, tokenized values ​​or stablecoins.” However, the index may include additional cryptocurrencies in the future if they meet certain criteria, such as being listed on US-regulated platforms or serving as the primary asset of exchange instruments on such platforms.

Hashdex emphasizes a passive investment strategy for ETFs, aiming to track the performance of NCI regardless of market direction. This approach reflects the company's desire to provide investors with exposure to the entire cryptocurrency market represented by the index.

Bloomberg ETF analyst James Seifert said the final SEC approval deadline for the Hashdex app is expected to be around the first week of March 2025. He also noted that the filing will include language allowing other digital assets to be added upon receiving SEC approval.