Subject to the requisite approvals, the Hashdex Nasdaq Crypto Index US ETF may incorporate additional cryptocurrencies in the future.
Hashdex, a digital asset manager, has taken another step in its proposition to provide a combined spot Bitcoin and Ether exchange-traded fund in the United States.
The company sent in an S-1 registration statement for its Hashdex Nasdaq Crypto Index US ETF on June 24. This ETF will follow some cryptocurrency assets in the Nasdaq Crypto US Settlement Price Index, which is the daily closing value of the Nasdaq Crypto Index and shows how well a big part of the digital asset market is doing.
The fund’s current objective is to incorporate Bitcoin; however, the filing implies that additional assets may be included in the future.
In its submission to the regulator, Hashdex stated that the Sponsor will implement a prototype replication strategy, which will consist of only bitcoin and ether in the same proportions as the Index, if any crypto asset other than bitcoin and ether becomes eligible for inclusion.
Hashdex would be required to submit an additional 19b-4 application in order to modify the cryptocurrencies contained within the ETF in the event of such an occurrence, the company stated.
The S-1 filing, which details the security the issuer intends to offer, was submitted approximately five weeks after Hashdex submitted its 19b-4 form on June 18, which was acknowledged by the US securities regulator in late June.
The combined cryptocurrency ETF would be permitted to list and trade officially if both are approved, making it the first of its kind in the United States.
The relative free float market capitalization of listed currencies would drive the weighting of Hashdex’s ETF. Upon approval today, the weighting would be 76.3% Bitcoin and 23.7% Ether.
The Nasdaq Crypto US Settlement Price Index includes Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL), which Hashdex may consider incorporating into its ETF in the future.
The combined spot cryptocurrency ETF that Hashdex proposed did not include Ether staking. As custodians for Hashdex’s BTC and ETH assets, BitGo and Coinbase Custody would maintain them in segregated accounts for individual proprietors.
Two days following the launch of eight asset managers’ spot Ether ETFs on US stock exchanges, Hashdex has submitted its S-1 filing.
The spot Ether ETFs experienced a combined $590.7 million in inflows on the first trading day, which was significantly higher than the initial predictions of industry analysts, with the exception of outflows from the Grayscale Ethereum Trust.
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