Hashdex Pursues US Bitcoin ETF Approval with Innovative Strategy
Hashdex, a crypto asset management firm, has entered the competition for the first US spot Bitcoin exchange-traded fund (ETF) in the fast-changing world of crypto. The company has formally filed an application with the US Securities and Exchange Commission (SEC) seeking clearance for a Bitcoin futures ETF that includes direct investments in spot Bitcoin.
ETFs are investment vehicles that are traded on stock exchanges and have their value related to an underlying mix of assets such as stocks, bonds, and commodities. Similarly, Bitcoin ETFs follow Bitcoin’s value and trade on standard stock exchanges, distinguishing them from crypto exchanges.
Unlike prior efforts by companies such as BlackRock, which depended on a surveillance-sharing arrangement with the cryptocurrency exchange Coinbase, Hashdex has taken a different approach. The organisation intends to acquire spot Bitcoin from credible physical exchanges in the CME market. This approach distinguishes Hashdex and reflects a distinct strategy. According to a 19b-4 filing with the SEC, Hashdex intends to rebrand its ETF and change its ticker to Hashdex Bitcoin ETF.
Financial commentators have expressed various views on Hashdex’s unique Bitcoin ETF registration. For example, Bloomberg analyst James Seyffart emphasised the strategy’s emphasis on exchange for related positional transactions. In contrast to direct cash purchases on exchanges, this includes exchanging futures contracts for an equivalent exposure to spot Bitcoin.
External pressures on Gary Gensler, chairman of the US Securities and Exchange Commission, such as the increasing Ethereum futures ETF proposals and BlackRock’s adoption of the Coinbase surveillance sharing agreement, Seyffart predicts a higher likelihood of SEC approval on this proposal.
Nate Geraci, President of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, among others, have all remarked on Hashdex’s unique Bitcoin ETF filing. They believe it has the potential to solve specific SEC concerns about Bitcoin market manipulation and liquidity.
While the approval of a spot Bitcoin ETF appears imminent, the current emerging situations in the US crypto market highlight the crypto realm’s ever-changing dynamics. While the business grapples with complicated regulatory constraints and security considerations, the outcomes of these incidents continue to pique the industry’s interest.
Keywords: Hashdex, crypto, bitcoin