Hashdex has put forth a proposal in a filing dated June 18 with the United States Securities and Exchange Commission (SEC) to develop a combined exchange-traded fund (ETF) for spot Bitcoin (BTC) and Ether (ETH) on the Nasdaq exchange.
As of May 27, the proposed ETF would allocate crypto assets based on their market capitalizations, with Bitcoin (BTC) accounting for 70.54% and Ether (ETH) for 29.46%. The ETF would follow a passive investment strategy by mirroring the daily market movement of the Nasdaq Crypto US Settlement Price Index without attempting to outperform it.
Analyst James Seyffart expressed that a combined-asset ETF “makes a lot of sense.” The ETF would solely focus on investing in BTC and ETH, excluding other spot assets. However, it stipulated that crypto assets must meet certain criteria for inclusion, such as being listed on a U.S.-regulated digital asset trading platform or being the underlying asset for a derivative instrument on a U.S.-regulated derivatives platform.
Coinbase and BitGo will act as custodians for the BTC and ETH assets, offering segregated accounts for individual shareholders.
Hashdex, an investment manager based in Brazil, previously filed with the SEC to create an ETH ETF but later withdrew the application. Its crypto ETF traded in Brazil comprises nine coins, with BTC and ETH making up nearly 92% of the total value. The U.S.-traded spot BTC ETF includes up to 5% BTC futures contracts and acquires the spot asset on the CME.
Hashdex still needs to file an S-1 application and obtain SEC approval. The SEC has a 90-day period to respond to the 19-b4, during which it will welcome feedback from the public and other financial institutions on the proposal. Seyffart anticipates a final SEC decision on the fund no later than March 2025.
Source: James Seyffart
In conclusion, Ethereum’s recent pullback could potentially be viewed as a beneficial opportunity, as stated by Dynamo DeFi and X Hall of Flame in a magazine article.