Hashdex Proposes New ETF to Blend Bitcoin and Ethereum
Hashdex has recently submitted a proposal to the Securities and Exchange Commission (SEC), aiming to create an exchange-traded fund (ETF) that would include both Bitcoin (BTC) and Ethereum (ETH). The proposed ETF, named Hashdex Nasdaq Crypto Index US ETF, is designed to offer investors exposure to these two leading cryptocurrencies, reflecting their distribution in the Nasdaq Crypto Index.
Breakdown of the ETF
The ETF will be composed of approximately 70.54% Bitcoin and 29.46% Ethereum, following a market-cap-weighted strategy that mirrors the broader cryptocurrency market represented by the Nasdaq Crypto Index. This means if someone invests in this fund, their money will mostly go into Bitcoin and a smaller part into Ethereum, similar to how these cryptocurrencies are valued in the larger market.
Significance of the Proposal
This initiative marks a significant step towards integrating digital assets into traditional financial instruments. By doing so, it potentially broadens the accessibility of cryptocurrencies to a wider range of investors. In simpler terms, it means more people, including everyday investors, can easily invest in cryptocurrencies through this fund.
Custodians and Future Assets
The fund will be backed by custodians Coinbase Custody Trust Company and BitGo Trust Company and will maintain cash reserves. This backing provides an additional layer of security and reliability, making it a safer investment option for people.
Though initially focusing on Bitcoin and Ethereum, the ETF might consider including more digital assets in the future, provided they get the green light from the SEC.
Favorable Regulatory Climate
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.
By offering a mix of Bitcoin and Ethereum, the Hashdex Nasdaq Crypto Index US ETF aims to make cryptocurrency investments more mainstream and accessible, potentially attracting more people to the world of digital assets.
In this way, the introduction of an ETF blending Bitcoin and Ethereum could bring a mix of the old and new worlds of finance together, making it easier for everyone, from professional investors to housewives, to take part in the cryptocurrency market.
