Hashdex, a Brazil-based cryptocurrency asset management platform, has recently applied for the approval of a dual ETF that includes both Bitcoin and Ethereum, the two largest cryptocurrencies in the world. This move by Hashdex comes at a time when the race for Spot Ethereum ETFs is heating up, with expectations of an official debut before the end of the year.
On June 18, Bloomberg analyst James Seyffart revealed in a post on X (formerly Twitter) that Hashdex had filed a 19b-4 application for a combined Bitcoin and Ethereum ETF. This filing came after the company withdrew its Spot Ethereum ETF application on May 24, following the SEC’s approval of other ETH ETF applications.
Hashdex’s decision to file for a dual Bitcoin and Ethereum ETF is a unique approach in the cryptocurrency ETF market, as opposed to the traditional individual ETFs. If approved by the SEC, Hashdex would be the first provider of a Spot Bitcoin and ETH ETF. The ETF will be market-weighted, meaning its composition will be based on the total market capitalization of Ethereum and Bitcoin.
According to the filing, the combined ETF will have 70.54% of Bitcoin and 29.46% of Ethereum. The company also disclosed that other eligible crypto assets could be added to the ETF in the future, based on certain criteria.
Seyffart also mentioned that Hashdex currently manages a crypto index ETF in Brazil, with Bitcoin and Ethereum making up 90% of its holdings. This background in managing crypto assets aligns with the company’s strategic goals as it ventures into the US market with a dual crypto ETF.
Hashdex plans to use two custodians for its Bitcoin and Ethereum ETF, namely Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc, to safeguard the assets of the trust.
In terms of Ethereum Spot ETFs, Crypto Capo, a crypto analyst on X, predicts that the approval and trading of ETH ETFs will begin in the coming weeks. This forecast is in line with Bloomberg Senior Analyst Eric Balchunas’ prediction that Ethereum Spot ETFs will debut by July 2, 2024.
While the US SEC has approved 19b-4 forms for eight Spot ETH ETFs, the regulator still needs to approve S-1 registration statements to initiate ETH ETF trading. SEC Chairman Gary Gensler mentioned that S-1 approvals are expected by the end of the summer.
Seyffart revealed that the deadline for the SEC’s approval of Hashdex’s combined Bitcoin and Ethereum ETF is around the first week of March 2025. This timeline indicates the regulatory process that the ETF application will undergo before it can be available for trading.
Overall, Hashdex’s move to file for a dual Bitcoin and Ethereum ETF reflects the evolving landscape of cryptocurrency investments and the increasing demand for diversified crypto asset exposure. With the potential approval of this ETF, investors may have more options to access and invest in the two leading cryptocurrencies in a regulated and structured manner.
