Hashdex Files S-1 for Joint Bitcoin and Ethereum Spot ETF in the US

Highlights:

• Hashdex seeks approval to launch a crypto index ETF for Bitcoin and Ethereum.
• It would be the first multi-asset crypto fund in the United States.
• The fund may add more coins based on regulations and specific criteria.

On July 24, digital asset manager Hashdex filed the S-1 registration statement with the US Securities and Exchange Commission (SEC) to launch an ETF that directly holds spot Bitcoin and Ethereum. The fund, named Hashdex Nasdaq Crypto Index US ETF, will initially hold BTC and ETH but may include additional assets in the future, depending on regulatory developments.

Hashdex files S-1 for combined spot btc & eth ETF… https://t.co/XurKX448Ab pic.twitter.com/je3PRiszPJ

— Nate Geraci (@NateGeraci) July 24, 2024

The S-1 filing details Hashdex’s business operations, custody, fees, asset management and more. It comes roughly five weeks after the company filed its 19b-4 form on June 18, which the SEC acknowledged in late June. 

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 First Crypto Index ETF

The Hashdex Nasdaq Crypto Index US ETF will track select cryptocurrency assets in the Nasdaq Crypto US Settlement Price Index (NCIS), which reflects the daily closing value of the Nasdaq Crypto Index (NCI) and measures a significant portion of the digital asset market’s performance.

If approved, it would be the first US crypto index ETF to include both BTC and ETH. Hashdex’s ETF would be weighted according to each coin’s relative free-float market caps. In simpler terms, it will be weighted by the circulating supply of each crypto, with approximately 75.3% BTC and 23.7% ETH.

Chainlink (LINK), Uniswap (UNI), Litecoin (LTC), and Filecoin (FIL) are among the cryptocurrencies listed in the NCIS. Hashdex might consider including them in its ETF in the future. Meanwhile, the firm did not propose including Ether staking in its combined spot crypto ETF.

In its latest filing to the SEC, Hashdex wrote:

“The Trust may invest in additional digital assets if such assets are determined to be consistent with the investment objectives of the Trust and if the inclusion of such assets is approved by the SEC.”

Hashdex Files S-1 Following Successful Launch of Spot Ethereum ETFs

This S-1 filing comes less than 48 hours after the spot Ethereum ETFs began trading. The new funds had a strong first day, with over $1B in trading volume and net inflows of $107M. Hashdex withdrew its application for a spot Ethereum ETF fund on May 24, one day after the SEC approved the 19b-4 filings from ETF issuers, including VanEck, BlackRock, Fidelity, and Grayscale. The company did not provide details on the reasons for the move at that time.

This year has been positive for crypto ETFs, with Hashdex emerging as a major beneficiary. The firm, which received approval to list a spot Bitcoin ETF in January, plans to leverage that experience for this latest product. Looking ahead, the crypto industry anticipates more cryptocurrency ETFs, including those for Solana and XRP, will receive approval.

Despite the bullish sentiment, Ethereum is underperforming. According to CoinMarketCap, it is currently at $3,172, a 7.90% decline on the daily chart.