Hashdex Proposes Dual Bitcoin and Ethereum ETF

Asset manager Hashdex plans to launch a spot exchange-traded fund (ETF) that simultaneously holds Bitcoin and Ethereum.

The proposal was published by Nasdaq in a 19b-4 form. The product will be named the Hashdex Nasdaq Crypto Index US ETF. 

According to the application, the instrument will also hold cash. If approved, Coinbase Custody Trust and BitGo Trust will serve as custodians.

“The fund will not invest in crypto securities, tokenized assets, or stablecoins,” the documents state.

The application caught the attention of Bloomberg ETF analyst James Seyffart. He remarked that there is “nothing surprising” about a “market cap-weighted ETF” as it “makes a lot of sense.” 

Update: A dual Ethereum and #Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn’t be a surprise to anyone — makes a lot of sense.

Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM

— James Seyffart (@JSeyff) June 18, 2024

The deadline for a decision by the SEC is expected around the first week of March 2025, the expert added. He also noted that the wording in the fund’s launch documents allows for the addition of other digital assets after actual approval. 

Hashdex took this step following the approval of spot Ethereum ETF applications in the US by other management firms. However, the company decided not to register the fund based on the second-largest cryptocurrency by market capitalization. 

Seyffart highlighted that Hashdex already has a crypto index ETF traded in Brazil. The product consists of 90% Bitcoin and Ethereum.

@hashdex already has a crypto index ETF that’s traded down in Brazil. These are the assets it currently holds and their weights in the fund. 90% is Bitcoin and Ethereum. pic.twitter.com/5yRCDsfUs0

— James Seyffart (@JSeyff) June 18, 2024

Earlier, Bloomberg ETF analyst Eric Balchunas announced the postponement of the spot ETH-ETF launch date to July 2, following feedback on S-1 forms from issuers.

On June 19, the SEC’s enforcement division ended its investigation into Ethereum 2.0. Simultaneously, fund issuers described the latest S-1 application adjustments as “light.”