Hashdex has received approval from the U.S. Securities and Exchange Commission (SEC) for its Nasdaq Crypto Index U.S. ETF under the 19b-4 application. The ETF will include both Bitcoin and Ethereum in its portfolio, marking a significant development in the cryptocurrency investment landscape. The ETF is set to launch in March 2025 if approved.
The 19b-4 filing is a regulatory procedure that outlines the review and approval process for certain Exchange-Traded Funds (ETFs) under the 1934 Securities Exchange Act. The SEC’s acceptance of Hashdex’s application indicates a step forward in the approval process for this ETF.
Hashdex previously attempted to launch a spot Ethereum ETF but withdrew the proposal due to a competitive market. The new ETF proposal represents a strategic shift towards a combined Bitcoin-Ethereum approach. The fund’s allocation will reflect a balanced approach to the two leading cryptocurrencies, with 70.54% in Bitcoin and 29.46% in Ethereum. Hashdex plans to ensure robust security measures by collaborating with Coinbase Custody Trust Company and Bitcoin Trust for the safe custody of these assets.
Including both Bitcoin and Ethereum in the ETF aims to attract a broader investor base and meet the growing demand for diversified crypto investment options. The public opinion on the ETF will play a crucial role in the SEC’s final decision, and it may face delays based on feedback and scrutiny.
Investors should closely follow this development as it represents a potential milestone in bridging traditional financial markets with the cryptocurrency sector. The approval of a spot Bitcoin-Ethereum ETF would signify substantial regulatory endorsement of cryptocurrencies and potentially pave the way for more widespread adoption. Industry experts expect interest and scrutiny to increase as the SEC’s decision date approaches. However, investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
