Hashdex targets first US dual Bitcoin-Ethereum ETF

Hashdex, one of the leading firms that focuses on digital currency investments, has recently provided the Securities and Exchange Commission (SEC) with a proposal for its new ETF. This innovative ETF will integrate two widely prevalent cryptocurrencies, Bitcoin, and Ethereum. Known as the Hashdex Nasdaq Crypto Index US ETF, its mission is to provide investors with a way to invest in these leading digital currencies by tracking their performance through the Nasdaq Crypto Index.

For Hashdex, the decision to launch an ETF is considered to be a game changer that can help bridge the gap between digital assets and financial markets. The creation of this ETF, which holds both bitcoins and ethers, not only means that a larger number of people will be able to invest in cryptocurrencies but also contribute to the recognition of cryptocurrencies in the sphere of traditional investment.

Like the Nasdaq Crypto Index, the ETF aims to have 70.54% in Bitcoin and 29.46% in Ethereum. The proportion of each cryptocurrency in the ETF gives equal market capitalization for a better representation of the entire digital currency space. The goal of this strategy is to give an investor a balanced solution to two popular cryptocurrencies.

To ensure the safety of the fund and compliance with the existing regulations, the fund is set to be managed under Coinbase Custody Trust Company and BitGo Trust Company. Furthermore, the fund would like to keep cash on its balance sheet as an additional layer to support its financial structure.

According to Hashdex, the ETF which at the moment invests mostly in Bitcoin and Ethereum might diversify the range of digital assets in the future. This would call for additional approval from the SEC and the company’s compliance with rules and regulations besides acknowledging the need for possible offerings in the market.

The timing of Hashdex’s submission is very strategic given that there are recent shifts on the positive side in the regulation policies. The approval of the Bitcoin spot ETF by the SEC and the expected approval of the Ethereum ETF suggest that more attention is being paid to cryptocurrency products in the American market. SEC chair Gary Gensler also mentioned the potential of Ethereum ETFs being tradable as soon as this summer during his testimony before a Senate committee.

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This significant advancement is a major milestone for investing in cryptocurrencies, as it indicates that a larger adoption of such virtual currencies has occurred, and such currencies are gradually becoming integrated into the existing financial structures. Promoters who may have earlier opted out of direct participation because of the ambiguities associated with digital wallets and security concerns can now invest by going through a familiar investment vehicle, thus injecting a new wave of funds into the market.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

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