Hashdex Proposes Crypto ETF as SEC Adjusts Regulatory Stance

Hashdex Submits Amended Application for Bitcoin and Ether ETF

In a significant development, asset manager Hashdex has filed a second amended application for its proposed exchange-traded fund (ETF), aimed at providing a diversified cryptocurrency portfolio. This announcement was made on November 25, following a regulatory filing with the United States Securities and Exchange Commission (SEC).

Progress with SEC

Hashdex's recent move indicates ongoing discussions and progress with the SEC, the primary financial regulatory body in the United States. The firm initially amended its S-1 filing in October after the SEC requested additional time to deliberate on the trading authorization for the ETF. This reflects the complexities and scrutiny involved in launching cryptocurrency-based investment products.

Initial Assets in the ETF

The Hashdex Nasdaq Crypto Index US ETF will launch by including Bitcoin (BTC) and Ether (ETH), as these are the only two assets currently part of the Nasdaq Crypto US Index. However, the ETF is expected to expand its portfolio over time, potentially including a wider range of digital currencies, as per the latest regulatory filing.

Growing Interest in Crypto Index ETFs

The interest in crypto index ETFs is on the rise, especially after the introduction of ETFs that hold Bitcoin and Ether earlier this year. Katalin Tischhauser, head of investment research at crypto bank Sygnum, pointed out that index ETFs can provide efficiency for investors, likening their functionality to the popular S&P 500 ETF.

The Evolving Landscape of Crypto Regulation

The regulatory landscape for cryptocurrencies is shifting, particularly after the US elections on November 5, which resulted in Donald Trump winning the presidency. Trump's administration has hinted at transforming the United States into a leading hub for cryptocurrency innovation. This shift could mean a more favorable environment for the cryptocurrency market.

Changes at the SEC

On November 21, SEC Chair Gary Gensler, who has held a stringent regulatory approach towards cryptocurrencies, announced his exit from the agency, effective January 20, 2025. This announcement aligns with Trump's campaign promises to appeal to crypto supporters by reassessing the SEC's leadership and its regulatory stance.

Conclusion

The submission of Hashdex's amended ETF application represents a significant step in the integration of crypto assets into regulated investment vehicles. As both industry interest and regulatory frameworks evolve, investors and market participants will closely monitor these developments in the cryptocurrency space.