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Cryptocurrency asset management firm Hashdex, with $900 million in assets under management (AUM), filed a joint Spot Bitcoin and Ethereum ETF application with the US Securities and Exchange Commission (SEC).
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.
— James Seyffart (@JSeyff) June 18, 2024
Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM
On June 18, Hashdex officially submitted its application for a joint Spot Bitcoin and Ethereum ETF to the SEC. This move comes amidst a year dominated by discussions on crypto-based ETFs.
The application includes language that allows for the addition of other digital assets as they get approved by the SEC, signaling potential for future expansion. Bloomberg ETF analyst, James Seyffart highlighted that this product "makes complete sense as a future goal," given the increasing acceptance and integration of cryptocurrencies in mainstream finance.
Hashdex’s application mentions two custodians: Coinbase and BitGo. Both are well-respected entities in the crypto space, known for their robust security measures and regulatory compliance.
Regulatory Timeline
The SEC has set a deadline in March 2025 to make a decision on Hashdex’s application. This period will be critical for the crypto community and investors who are keenly observing the SEC’s stance on digital assets.
The approval process will likely involve thorough scrutiny of the ETF's structure, custodial arrangements, and compliance with regulatory standards.
Market Context
The filing comes after Bitcoin's significant milestones in the ETF space.
In January 2024, the SEC approved the first Bitcoin spot ETFs in the US, leading to a surge in market activity.
Bitcoin ETFs received $1.2 billion in net inflows during their first week of trading, with major financial institutions like BlackRock and Fidelity driving the inflows. This success propelled Bitcoin to an all-time high of $74,000 in March 2024.
Potential Impact
A joint BTC and ETH ETF by Hashdex could be a game-changer for the cryptocurrency market. Bitcoin and Ethereum are the two largest cryptocurrencies by market capitalization, and their inclusion in a single ETF could attract a broader range of investors.
The ETF would provide exposure to the performance of both assets, allowing investors to diversify their crypto holdings within a regulated framework.