Hashdex Space Releases Ether ETF App
Investment manager Hashdex has canceled its application for a space ether exchange-traded fund (ETF), according to filings with the United States Securities and Exchange Commission (SEC).
A filing from May 28 shows that Hashdex has pulled its application for a proposed rule change to initially launch its Hashdex Nasdaq Ethereum ETF. The proposal was adopted on May 24, a day after eight similar financial products were approved by the financial regulator.
There are no details on the reasons for the move or whether Hashdex will resubmit the proposal. Cointelegraph reached out to Hashdex and did not receive an immediate response.
A source familiar with the application told Cointelegraph that Hashdex “no longer intends to move forward with a single-asset Ether ETF.”
On May 23, the SEC approved 19b-4 filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy and Bitwise, clearing the way for Spot Ether (ETH) ETFs to list and trade on their respective exchanges. Exchanges. Funding is expected to begin in June.
Like other indicators, Hashdex's application for space ether ETFs seeks to reduce potential fraud by combining space ether holdings with ether futures contracts in a single product.
Other investors such as Fidelity, ARK 21Shares and Franklin Templeton focused on SEC-based Ether ETFs with late revisions to their plans, such as removing support for ETH shares in response to SEC feedback.
Additionally, Hashdex's ETF sought to reflect daily changes in the Nasdaq Ether Reference Price to address regulatory concerns about market manipulation. As of September 2023, according to the admissions document:
“Instead of holding 100% Spot Ether, which makes it more vulnerable to price manipulation in the spot market, the fund will hold a mix of Spot Ether, Ether futures contracts and cash.”
Hashdex is among the spot Bitcoin (BTC) ETF providers approved in January. Similarly, the company's BTC fund used an alternative strategy to other asset managers. For example, Hashdex's Bitcoin ETF does not rely on Coinbase's tracking sharing agreement, opting instead to acquire BTC from physical exchanges in the CME market.
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