Hashedex, a Brazilian asset management firm, has submitted a Securities and Exchange Commission (SEC) filing for a dual Ethereum and Bitcoin exchange-traded fund (ETF).
The ETF would be listed on Nasdaq, making it accessible to a wide spectrum of investors, including institutional players and retail participants, if it is approved.
The product would give investors 70.54% exposure to Bitcoin and 29.46% to Ethereum, as indicated in the filing.
According to James Seyffart, Senior ETF Analyst at Bloomberg Intelligence, the SEC’s approval deadline is anticipated to be March 2025.
Laurent Kssis, an independent board member of Issuance Swiss AG, stated, “The regulator is currently in the process of accepting new tokens, with ETH being the next on the list.” This is indicative of the ongoing competition to be innovative.
Similar ETPs are Available in Europe
Although Hashdex’s proposal is distinct in the context of the U.S. market, comparable products have already garnered popularity in Europe.
21Shares, an asset management firm, has pioneered providing exchange-traded products (ETPs) that facilitate cryptocurrency trading. They provide diversified products that combine multiple cryptocurrencies and ETPs that monitor individual cryptocurrencies such as Bitcoin and Ethereum.
Xetra, a renowned electronic trading platform in Germany, offers a diverse selection of crypto ETPs, such as those from 21Shares, and other providers, such as ETC Group.
The products have been well-received thus far. This indicates the substantial demand among investors for transparent and regulated digital asset investing methods.
Furthermore, the Nordic Growth Market in Sweden and the SIX Swiss Exchange have simultaneously adopted crypto ETPs, providing various products. A valuable case study on successfully integrating such products into the financial ecosystem is available in European markets.
“We have seen such exposure or baskets in Europe back in 2019 in the form of an ETP so it’s an obvious proposition to suggest it in the us and be prepared once the underlying has been approved,” said Kssis.
He continues to elaborate that the primary objective is to establish oneself as a pioneer in the industry, and issuers are eager to create such a proposition.
The SEC’s historically cautious approach to crypto ETFs renders Hashdex’s ETF filing particularly significant.
