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Crypto asset management firm Hashdex has entered the race for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States. The company has filed an application with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin futures ETF that will include spot Bitcoin.
ETFs are investment vehicles that are traded on stock markets, with their value based on an underlying collection of assets such as stocks, bonds, commodities, and other financial instruments. In a similar manner, Bitcoin ETFs track the value of BTC and are traded on conventional stock exchanges instead of crypto exchanges.
Hashdex’s strategy sets it apart from recent applications as it will not rely on the Coinbase surveillance sharing agreement, choosing instead to obtain spot Bitcoin from physical exchanges within the CME market. As per a 19b-4 filing by NYSE Arca with the U.S. SEC, Hashdex plans to incorporate spot Bitcoin into its Bitcoin futures ETF and rename it, changing its ticker to Hashdex Bitcoin ETF.
Breaking: NYSE files a modification to another ETF, to be now called the Hashdex Bitcoin ETF
Their application is unique in that it will not use Coinbase, they will use prices and acquire spot BTC via CME.
It will hold a mixture of spot & futures positions
Hard to reject imo pic.twitter.com/K1ABKKZX5o— Alistair Milne (@alistairmilne) August 25, 2023
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Some analysts have reacted to Hashdex’s distinctive Bitcoin ETF application. James Seyffart, an analyst at Bloomberg, noted that the strategy focuses solely on executing exchange for related positions transactions. This involves exchanging futures contracts for an equivalent spot exposure rather than making direct cash purchases from exchanges.
Seyffart believes there is an increased chance of SEC approval, given the pressure on Gary Gensler resulting from the Grayscale lawsuit, the submission of Ethereum futures, and BlackRock’s inclusion of the Coinbase surveillance sharing agreement.
Related: Former Binance.US CEO joins Hashdex board
Other experts, including Nate Geraci, president of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, have commented on Hashdex’s unique Bitcoin ETF filing. They suggest it could address some of the SEC’s concerns regarding Bitcoin market manipulation and liquidity.
The SEC and its Chair, Gary Gensler, have not provided any comments on the spot Bitcoin ETF applications, the surge of Ethereum ETFs, or the potential approval of a spot Bitcoin ETF this year.
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