Hashdex Proposes First U.S. Bitcoin-Ethereum ETF

June 24, 2024

Hashdex has submitted a proposal to the Securities and Exchange Commission to create an exchange-traded fund that would include both Bitcoin (BTC) and Ethereum (ETH). The proposed ETF, named Hashdex Nasdaq Crypto Index US ETF, aims to offer investors exposure to the two leading cryptocurrencies, reflecting their distribution in the Nasdaq Crypto Index.

The ETF would be composed of approximately 70.54% Bitcoin and 29.46% Ethereum, adhering to a market-cap-weighted strategy that mirrors the broader cryptocurrency market as represented by the Nasdaq Crypto Index.

This initiative marks a significant advancement in integrating digital assets into conventional financial instruments, potentially broadening the accessibility of cryptocurrencies to a wider range of investors. The fund will be backed by custodians Coinbase (NASDAQ:COIN) Custody Trust Company and BitGo Trust Company and will maintain cash reserves.

While initially focusing on Bitcoin and Ethereum, the ETF may consider including additional digital assets in the future, pending SEC approval. This proposal arrives during a favorable regulatory climate, following the SEC’s approval of Bitcoin spot ETFs and the anticipated introduction of Ethereum ETFs in the U.S. market.

SEC Chair Gary Gensler recently indicated to a Senate committee that Ethereum ETFs might begin trading by this summer.

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