Hashdex has made changes to its S-1 application for the Hashdex Nasdaq Crypto Index US exchange-traded fund for the second time. The amended filing was submitted on Nov. 25 to the Securities and Exchange Commission following the SEC’s request in August for additional time to review the proposal. The initial S-1 registration statement was filed by Hashdex on June 24.
For those who are unfamiliar, a crypto index ETF is a fund that monitors the performance of a group of cryptocurrencies, offering diversified exposure to the digital asset market. The goal is to mirror the performance of an underlying index by holding the same assets in similar proportions.
The portfolio of the NCIUS ETF will consist solely of Bitcoin (BTC) and Ether (ETH), excluding investments in other cryptocurrencies, tokenized assets, stablecoins, or crypto-related securities. However, there is a possibility of adding more assets in the future.
If approved, this ETF would be the first diversified spot cryptocurrency ETF in the United States, providing exposure to multiple digital assets through a single fund.
Several other issuers have also filed for similar crypto index ETFs. Franklin Templeton submitted a filing for its Franklin Crypto Index ETF in August, which aims to track the CF Institutional Digital Asset Index. Like Hashdex’s proposal, it is currently limited to Bitcoin and Ether due to regulatory restrictions but may expand in the future.
On Nov. 20, the United States Securities and Exchange Commission postponed the approval decision for the Franklin Templeton Crypto Index ETF until January 6, 2025, as no public comments had been received on the proposed rule change since its publication on Oct. 8.
Following the success of Bitcoin and Ether spot ETFs, the focus in the industry seems to be shifting towards crypto index funds. Nate Geraci, the President of The ETF Store, pointed out that major players like Grayscale and Bitwise are now looking into offering diversified crypto funds.
These developments are occurring as the SEC prepares for significant leadership changes after Chair Gary Gensler announced his resignation, effective January 20, 2025. Gensler, known for his strict regulatory stance on cryptocurrencies, will be replaced by a new appointee under the pro-crypto administration led by Donald Trump, which may lead to more industry-friendly policies.
