Nasdaq Files Hashdex Mixed Ether ETF, Engaging in the Crypto ETF Competition

Nasdaq Submits Application to SEC for Ethereum ETF

The Nasdaq stock exchange has officially applied to the Securities and Exchange Commission (SEC) for approval to list an Ethereum Exchange-Traded Fund (ETF) offered by Hashdex, an asset management company. This ETF aims to revolutionize cryptocurrency investment within the current regulatory framework by combining spot ether holdings and futures contracts in its portfolio.

The Hashdex Nasdaq Ethereum ETF, which is the first ’33 Act Ethereum futures filing under the ‘33 Act, will be overseen and supervised by Toroso Investments. Toroso Investments is registered as a commodity pool operator with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association.

One of the key aspects being considered in the approval of cryptocurrency ETF applications is whether the proposed funds include futures contracts or spot assets. While the SEC has granted approval for funds including futures contracts, the approval for funds including spot assets is still pending. Fund managers are exploring a middle-ground option to maximize their chances of receiving regulatory approval.

The main objective of the Hashdex fund is to ensure that its shares reflect the daily fluctuations in the Nasdaq Ether Reference Price. To achieve this, the fund plans to invest in ether, ether futures contracts traded on the CME, as well as cash and cash equivalents. The Nasdaq stated in the 19b-4 form:

“Instead of holding 100% spot Ether, which could make it more susceptible to price manipulation in the spot market, the Fund will hold a mix of Spot Ether, Ether Futures Contracts, and cash,”

By including Ether Futures Contracts and cash in its holdings, the fund aims to reduce its reliance on the spot market and address concerns about potential manipulation in unregulated Ether spot exchanges.

In addition to the Hashdex Ethereum ETF, Hashdex has also entered the competition for a spot Bitcoin (BTC) exchange-traded fund in the United States. Unlike recent filings that rely on the Coinbase surveillance sharing agreement, Hashdex intends to acquire spot Bitcoin from physical exchanges within the CME market.

Ark Invest, 21Shares, and VanEck have also submitted applications to the SEC for spot ether ETFs. However, the SEC has yet to make a decision on any of the spot cryptocurrency fund applications it has received.

This move by the Nasdaq and Hashdex represents a significant development in the world of cryptocurrency investing, as the inclusion of ethereum ETFs will provide investors with more opportunities to participate in this growing market.

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J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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