Key Takeaways
- Hashdex plans to acquire spot Bitcoin via physical exchanges within the Chicago Mercantile Exchange (CME) market.
- Hashdex intends to include spot Bitcoin in its Bitcoin futures ETF and modify its ticker to Hashdex Bitcoin ETF.
Hashdex, a prominent crypto asset management firm, has thrown its hat into the ring in the race for a coveted spot in the burgeoning U.S. Bitcoin exchange-traded fund (ETF) market. The company’s strategic move involves submitting a distinctive application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin futures ETF with an intriguing twist – the inclusion of spot Bitcoin.
Diverging from recent filings, Hashdex has chosen an independent route, foregoing reliance on the widely-utilized Coinbase surveillance sharing agreement. Instead, it has charted a course to acquire spot Bitcoin via physical exchanges within the Chicago Mercantile Exchange (CME) market. This novel approach has been unveiled alongside Hashdex’s intent to rebrand the ETF under the moniker “Hashdex Bitcoin ETF,” a detail outlined in the 19b-4 filing by NYSE Arca in collaboration with the SEC.
In the financial landscape, exchange-traded Funds (ETFs) are familiar investment instruments traded on conventional stock exchanges. These funds derive their value from diversified portfolios featuring an array of assets, including stocks, bonds, and commodities. Bitcoin ETFs, however, deviate from the norm by tracking the value of the cryptocurrency Bitcoin, enabling indirect exposure for investors minus the complexities associated with direct ownership.
Hashdex’s strategic decision to sidestep the commonly employed Coinbase surveillance-sharing agreement underscores its dedication to autonomy and maximizing returns for investors. Through sourcing spot Bitcoin from the tangible exchanges within the CME market, Hashdex aims to create a distinct proposition tailored to appeal to potential investors seeking a differentiated approach to Bitcoin investment.
Amidst growing market demand, the prospect of a spot Bitcoin ETF has gained substantial traction. Such an ETF, diverging from futures contracts and derivatives, would meticulously mirror the price of Bitcoin itself. This streamlined avenue could potentially democratize access to Bitcoin’s allure, eliminating the need for individuals to navigate the intricacies of direct cryptocurrency purchase and storage.
Despite this positive trajectory, the protracted SEC review process for specific ETF applications has elicited frustration within the industry. A recent hold-up in evaluating the Ark 21Shares Bitcoin ETF application, coupled with ongoing assessments of proposals from financial heavyweights such as BlackRock and Fidelity Investments, is viewed with caution by investors.
A recent crypto-services provider Matrixport’s report that stated the U.S. SEC would likely approve several spot bitcoin exchange-traded funds in quick succession has triggered some excitement in the crypto industry.
