Crypto asset management firm Hashdex has joined the competition for a spot bitcoin (BTC) exchange-traded fund (ETF) in the United States. The company has filed an application with the US Securities and Exchange Commission (SEC) for a bitcoin futures ETF to hold spot bitcoin.
ETFs are mutual funds that trade on an exchange and derive their value from an underlying basket of assets such as stocks, bonds, commodities, and other financial instruments. Likewise, Bitcoin ETFs track the value of BTC and trade on traditional exchanges rather than crypto exchanges.
Hashdex’ approach differs from recent filings as it is not dependent on the Coinbase oversight release agreement and chooses to purchase spot bitcoin from physical exchanges within the CME market. According to a 19b-4 filing by NYSE Arca with the US SEC, Hashdex intends to add spot bitcoin to its bitcoin futures ETF and change the name by changing its ticker to Hashdex Bitcoin ETF.
Breaking News: NYSE submits amendment for another ETF, now called Hashdex Bitcoin ETF
Their application is unique in that it doesn’t use Coinbase but instead uses prices and acquires spot BTC via CME.
It will hold a mix of spot and futures positions
Hard to turn down in my opinion pic.twitter.com/K1ABKKZX5o
— Alistair Milne (@alistairmilne) August 25, 2023
Some experts have reacted to Hashdex’ unique Bitcoin ETF filing. James Seyffart, an analyst at Bloomberg, noted that the strategy is solely to make trades to exchange related positions. This involves exchanging futures contracts for equivalent spot exposure rather than direct cash purchases from exchanges.
Seyffart reckons with a higher likelihood of SEC approval given the pressure on Gary Gensler resulting from the Grayscale lawsuit, Ethereum futures filing, and BlackRock’s inclusion of the Coinbase surveillance clearance agreement.
Related: Former CEO of Binance.US Joins Hashdex Board
Other specialists, including Nate Geraci, President of The ETF Store, investor Alistair Milne and financial attorney Scott Johnsson, have reacted to Hashdex’ unique Bitcoin ETF listing. They believe this may allay certain SEC concerns about bitcoin market manipulation and liquidity.
The SEC and its chairman Gary Gensler have not commented on the spot bitcoin ETF filings, the influx of Ethereum ETFs, and the possible approval of a spot bitcoin ETF this year.
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