Hashdex’s Innovative Approach to Bitcoin ETF
Hashdex, a crypto asset management company, has applied for approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, taking a unique approach. Unlike recent submissions, the company will not rely on the Coinbase surveillance sharing agreement but will acquire spot Bitcoin from physical exchanges within the CME market. The company has formally filed with the U.S. Securities and Exchange Commission (SEC) for a Bitcoin futures ETF with the distinctive feature of holding spot Bitcoin. The filing indicates the intention to rebrand it as the “Hashdex Bitcoin ETF.”
Market analysts, including James Seyffart from Bloomberg, see Hashdex’s strategy, involving transactions with exchange-related positions, as having a higher chance of SEC approval. The pressure on SEC Chair Gary Gensler, highlighted by factors like the Grayscale lawsuit, Ethereum futures submissions, and BlackRock’s Coinbase surveillance sharing integration, could play a role in the decision.
Other experts, including Nate Geraci, the president of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, have also weighed in on Hashdex’s unconventional Bitcoin ETF proposal. They posit that it could address certain concerns of the SEC regarding market manipulation and liquidity issues related to Bitcoin.
As of now, the SEC and its Chair, Gary Gensler, have refrained from commenting on the applications for spot Bitcoin ETFs, the increasing influx of Ethereum ETFs, and the potential approval of a spot Bitcoin ETF within the current year.
