In a significant development within the cryptocurrency industry, asset manager Hashdex recently submitted an application to the US Securities and Exchange Commission (SEC) for a combined spot Ethereum and Bitcoin ETF. 

Ethereum And Bitcoin ETF Merge? 

Bloomberg ETF expert James Seyffart noted that Hashdex’s proposed ETF would be market cap-weighted and could potentially accommodate additional digital assets as they gain approval from the SEC. 

Hashdex already operates a successful crypto index ETF in Brazil, known as HASH11, which primarily consists of Bitcoin and Ethereum, making it a logical step to introduce a similar offering to the US market, according to Seyffart.

Notably, the filing with the SEC states that Hashdex plans to use the services of at least two custodians, Coinbase and BitGo, to ensure the safe storage of the underlying assets. 

While spot Ethereum ETFs in the US are yet to receive full approval from the SEC, Bloomberg analyst Eric Balchunas has suggested an estimated launch date of July 2nd based on minor feedback received by issuers. 

This development indicates that the SEC’s review process for spot Ethereum ETFs is nearing completion, setting the stage for potential market expansion and increased investment opportunities.

Hashdex’s decision to launch a joint Ethereum and Bitcoin ETF aligns with their belief that as cryptocurrencies gain mainstream acceptance, new assets will emerge to disrupt the market share of Bitcoin and Ethereum. 

Crypto Indices

In a recent blog post analyzing the current state of the market, the asset manager explained that by offering a diverse basket of crypto assets through an index-based approach, Hashdex aims to provide investors with exposure to the growth potential of these alternative digital assets.

The asset manager’s success in Brazil, where crypto index ETFs have surpassed single-asset products, underscores the benefits of diversification and regulated ETF structures. 

Hashdex anticipates this trend to expand to Europe and eventually the US, as “evolving regulations” and growing demand from professional investors and wealth managers favor diversified exposure.

Hashdex believes that crypto indices offer several advantages for investors, including risk mitigation, transparency, standardization, and a time-tested methodology. The Hashdex blog post further reads: 

The crypto market remains a complex landscape prone to volatility, and this will not change any time soon. Identifying individual winners and losers has always been a challenge in traditional markets, and becomes even more so with an emerging asset class like crypto. However, crypto indices offer a standardized approach to capturing overall market performance, serving as a guidepost in the ever-evolving digital asset landscape. 

Ultimately, Hashdex’s filing for a joint Ethereum and Bitcoin ETF signifies a pivotal moment in expanding the accessibility of crypto investments. With the potential approval of spot Ethereum ETFs and the increasing adoption of diversified crypto index strategies, the stage is set for a brighter future for investors seeking exposure to the digital asset space.

As of this writing, the largest cryptocurrency on the market, Bitcoin, continues its downward trend, falling 3.3% in 24 hours, resulting in a current trading price of $64,600. 

Featured image from DALL-E, chart from TradingView.com