Asset Manager Hashdex Files for Combined Bitcoin-Ethereum ETF

Brazilian asset management firm Hashedex has submitted a Securities and Exchange Commission (SEC) filing for a dual Ethereum and Bitcoin exchange-traded fund (ETF).

The ETF, if approved, would be listed on the Nasdaq making it accessible to a broad range of investors, from institutional players to retail participants.

According to the filing, the product would give investors 70.54% exposure to Bitcoin and 29.46% to Ethereum.

The deadline for SEC approval is estimated to be March 2025, said James Seyffart, Senior ETF Analyst, from Bloomberg Intelligence.

Update: A dual Ethereum and #Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn't be a surprise to anyone — makes a lot of sense.

Final deadline for SEC approval should be sometime around the first week of March 2025 pic.twitter.com/5wB7ucvbgM

— James Seyffart (@JSeyff) June 18, 2024

“The race to being innovative continues where the regulator is in the process of accepting new tokens and ETH being the next on the list,” said Laurent Kssis, an independent board member of Issuance Swiss AG.

Similar ETPs Available in Europe

While Hashdex’s proposal is different within the context of the U.S. market, similar products have already gained traction in Europe.

Asset management firm 21Shares has been at the forefront of offering crypto ETPs (exchange-traded products). Their offerings include ETPs that track individual cryptocurrencies like Bitcoin and Ethereum, as well as diversified products that bundle multiple cryptocurrencies.

In Germany, Xetra, a prominent electronic trading platform, lists a variety of crypto ETPs, including those from 21Shares and other providers like ETC Group.

So far, the products have been well-received. This reflects strong investor demand for regulated and transparent ways to invest in digital assets.

Additionally, the Nordic Growth Market in Sweden and the SIX Swiss Exchange have also embraced crypto ETPs, offering a range of products. European markets already provide a useful case study for how such products can be successfully integrated into the financial ecosystem.

“We have seen such exposure or baskets in Europe back in 2019 in the form of an ETP so it’s an obvious proposition to suggest it in the us and be prepared once the underlying has been approved,” said Kssis.

He goes on to explain that it is all about positioning yourself as first-time movers and issuers are keen to develop such a proposition.

Hashdex’s ETF filing is particularly significant given the SEC’s historically cautious approach when it comes to crypto ETFs.