Hashdex, a company that manages cryptocurrency assets, has taken a big step by filing a registration statement, called S-1, with the U.S. Securities and Exchange Commission for its Hashdex Nasdaq Crypto Index US ETF. This move is significant because it aims to become the first index-based crypto ETF in the U.S. that will follow certain digital assets in the Nasdaq Crypto US Settlement Price Index.
The company plans to stick to a sample replication strategy if any crypto asset other than Bitcoin and Ethereum becomes eligible for inclusion in the Index. This strategy ensures that BTC and Ether will remain in the Index in their specified proportions. However, if the Trust decides to go back to a full replication strategy, it will need to file a rule change with the SEC under Rule 19b-4 of the Exchange Act to modify its listing rules for new Index Constituents.
In a post on X, Bloomberg ETF Analyst James Seyffart mentioned that once the fund receives approval from the SEC, it could potentially add other assets in the future. This indicates that there is room for expansion and diversification within the ETF.
The filing of the S-1 outlining the security Hashdex plans to offer came about five weeks after the company submitted its 19b-4 form on June 18. The U.S. securities regulator acknowledged this filing in late June. If both filings are approved, the combined cryptocurrency ETF could officially list and trade, opening up new opportunities for investors.
Hashdex’s ETF will be weighted based on the free float market caps of the listed crypto assets, with BTC accounting for 76.3% and ETH for 23.7%. Additionally, other cryptocurrencies like Litecoin (LTC), Chainlink (LINK), Uniswap (UNI), and Filecoin (FIL) may also be considered for inclusion in the ETF in the future, as they are part of the Nasdaq Crypto US Settlement Price Index.
It’s worth noting that Hashdex clarified in its S-1 filing that it will not include Ether staking in its combined spot cryptocurrency ETF. BitGo and Coinbase Custody will serve as custodians for Hashdex’s Bitcoin and Ethereum assets, holding them in segregated accounts for individual shareholders.
In a related development, eight asset managers recently launched spot Ether ETFs on U.S. stock exchanges. On the first trading day, these ETFs attracted a total of $590.7 million in inflows, surpassing industry analysts’ predictions. However, the trend shifted the following day, leading to outflows and a 10% drop in ETH’s value to under $3,150 at one point.
Overall, the filing of Hashdex’s S-1 for its crypto ETF marks an important milestone in the cryptocurrency investment space, offering investors new opportunities to diversify their portfolios and participate in the growing digital asset market.