[NEWS] Hashdex files for Bitcoin and Ethereum combined ETF with SEC

Asset management company Hashdex has filed an application with the U.S. Securities and Exchange Commission (SEC) for a hybrid ETF combining spot Bitcoin (BTC) and spot Ethereum (ETH) on Nasdaq.

Asset management company Hashdex has filed an application with the U.S. Securities and Exchange Commission (SEC) for a hybrid ETF combining spot Bitcoin (BTC) and spot Ethereum (ETH) on Nasdaq.

If approved by the SEC, it would be the first ETF in history to directly hold both Bitcoin and Ethereum physical assets in the U.S. market.

The application, filed on Form 19b-4 with Nasdaq, details the Hashdex Nasdaq Crypto Index US ETF, a fund that tracks the Nasdaq Crypto Index (NCI).

The form states that the ETF will include cash holdings and that Coinbase Custody and BitGo will be designated as custodians if the fund is launched.

NCI is a market-cap weighted index, and the fund will primarily hold 70.54% Bitcoin and 29.4% Ethereum.

The ETF proposal was announced in January, which marked a landmark year for cryptocurrency funds in the U.S.: the SEC approved a Bitcoin spot ETF on January 11, and the first Ethereum spot ETF in late May.

SEC Chairman Gary Gensler recently told a Senate committee that trading in an Ethereum spot ETF would begin in the summer.

While Hashdex's ETF is currently focused on Bitcoin and Ethereum, the filing makes it clear that it will not invest in "crypto securities, tokenized assets, or stablecoins."

However, it also notes that multiple cryptocurrencies may be included in the index in the future, as long as they meet certain criteria.

These criteria include being listed on a regulated U.S. cryptocurrency trading platform and/or serving as an underlying asset for derivative products on such platforms.

ETF Active Investment Strategy

HashDex is focusing on an active investment strategy for the ETF, aiming to track the performance of NCI regardless of market direction.

This indicates an intention to not only outperform the index, but also to provide investors with exposure to the entire cryptocurrency market represented by the index.

The filing follows previous efforts by Hashdex to transition its Bitcoin Futures ETF to hold physical Bitcoin directly, following the launch of its Bitcoin spot ETF in January. However, the company was unable to get approval before its competitor's launch in January.

ETF analyst James Seyffart of Bloomberg Intelligence noted that the ETF's approval could occur around the first week of March 2025.

"If the SEC approves it, there's language here that would essentially allow the addition of other digital assets," he added.

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