Bitcoin and Ethereum Joint ETF Could Come to US via Hashdex
We have spot Bitcoin ETFs already active in the United States, and Ethereum ETFs are due to hit the market soon. But what’s next? If Hashdex has its way, it could be an ETF that includes both Bitcoin and Ethereum.
Hashdex's New Proposal
Hashdex, a well-known crypto asset manager, has filed an application for the Hashdex Nasdaq Crypto Index US ETF. If approved, it would be the first exchange-traded fund (ETF) in the U.S. to hold both Bitcoin and Ethereum directly.
This application was submitted using Form 19b-4 with the Nasdaq, and it details a fund that tracks the Nasdaq Crypto Index (NCI). The filing states that the ETF will hold cash, with Coinbase Custody and BitGo as designated custodians.
How the Fund Will Work
The Nasdaq Crypto Index is market-capitalization weighted. This means the fund would primarily hold Bitcoin (70.54%) and Ethereum (29.46%), reflecting the relative sizes of these cryptocurrencies.
Context and Significance
This proposed ETF comes after a year of achievements for crypto funds in the U.S. The Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs in January, and Ethereum ETFs received initial approvals in late May. SEC Chair Gary Gensler recently told a Senate committee that these ETFs should start trading this summer.
While the Hashdex ETF focuses on Bitcoin and Ethereum for now, the filing notes that it would not invest in "crypto securities, tokenized assets, or stablecoins." However, additional crypto assets could be included in the future if they meet certain criteria, such as being listed on a U.S.-regulated platform.
Investment Strategy
Hashdex emphasizes a passive investment strategy for the ETF. This means it aims to match the NCI's performance, no matter which way the market is going. It intends to provide investors with exposure to the overall cryptocurrency market represented by the index.
This filing follows Hashdex’s prior efforts to transition its Bitcoin futures ETF to hold physical BTC directly, like the spot Bitcoin ETFs launched in January. However, Hashdex couldn’t secure approval before its competitors did.
Approval Timeline
Bloomberg ETF analyst James Seyffart noted that the SEC's final approval decision for the joint Hashdex application should be around the first week of March 2025. He added, "There's language in here to allow the addition of other digital assets essentially as they are approved by the SEC."
This potential ETF marks another significant step forward for crypto investment in the United States, providing a new way for investors to get exposure to the two leading cryptocurrencies, Bitcoin and Ethereum.
