Hashdex’s Bitcoin Futures ETF Could Be a Game Changer for Traditional Bitcoin ETF Hopefuls

The Hashdex’s bitcoin futures ETF is due to list on the NYSE Arca on September 16 under the ticker $DEFI after receiving a green light from the Securities and Exchange Commission (SEC). Unlike other bitcoin futures ETFs, it received approval under the Securities Act of 1933, which could possibly be used to obtain SEC approval for physical bitcoin ETFs.

The SEC has so far been reluctant to approve crypto products under the '33 Act. In August 2021, SEC Chairman Gary GENSLER stated that he was interested in approving bitcoin futures products under the Investment Company Act of 1940, a path that effectively closed the approval of spot products. The '40 Act regulates investment companies, mutual funds and their product offerings, while the '33 Act sets out the registration and disclosure process for securities offerings.

Hashdex decided to take advantage of the '33 Act because it turned out to be the best wrapper for the product, mainly due to tax efficiency. Hashdex head of new markets Bruno SOUSA said the scrutiny of crypto products appears to be more about how the product itself works rather than scrutiny of crypto as a whole, which he said is a positive.

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