Crypto asset manager Hashdex has joined the race for a U.S. spot bitcoin (BTC) exchange-traded fund (ETF). The firm has filed with the U.S. Securities and Exchange Commission (SEC) for a bitcoin futures ETF that holds spot bitcoin.
ETFs are investment funds traded on the stock market that derive their value from an underlying basket of assets such as stocks, bonds, commodities, and other financial instruments. Likewise, Bitcoin ETFs track the value of BTC and trade on traditional stock exchanges rather than cryptocurrency exchanges.
Hashdex’s approach differs from the recent filing in that it does not rely on Coinbase to monitor the sharing protocol, opting instead to obtain spot bitcoin from physical exchanges within the CME market. According to 19b-4 archive According to news from NYSE Arca and the US SEC, Hashdex intends to include spot bitcoin in its bitcoin futures ETF, and change the name, replacing the DeFi code with “Hashdex Bitcoin ETF”.
Breaking: NYSE Files Amendments to Another ETF, Now Called Hashdex Bitcoin ETF
What’s unique about their app is that it won’t use Coinbase, they will use prices and get spot BTC via CME.
It will hold a combination of spot and futures positions
hard to say no to me pic.twitter.com/K1ABKKZX5o— Alistair Milne (@alistairmilne) August 25, 2023
Several analysts and experts have responded to Hashdex’s unique Bitcoin ETF filing. Bloomberg analyst James Seyffart Observed This strategy simply involves taking an Exchange of Related Positions (EFRP) trade. This entails exchanging futures contracts for equivalent spot exposure, rather than buying cash directly from an exchange.
Considering the pressure on Gary Gensler from the Grayscale lawsuit, the submission of Ethereum futures, and BlackRock’s inclusion of Coinbase’s monitoring sharing agreement, James Seyffart expects the possibility of SEC approval to be higher.
related: Former Binance US CEO Joins Hashdex Board of Directors
Other experts, including ETF Store president Nate Geraci, investor Alistair Milne, and financial attorney Scott Johnsson, responded to Hashdex’s unique bitcoin ETF submission. They believe this could assuage some of the SEC’s concerns about Bitcoin market manipulation and liquidity.
At present, the SEC and Gary Gensler have not provided feedback on the Bitcoin ETF spot application, the influx of Ethereum ETFs, and the possible approval of the Bitcoin ETF spot ETF within this year.
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