Hashdex Aims to Launch US’s First Index-Based Crypto ETF

Crypto asset management firm Hashdex is progressing in its efforts to establish an exchange-traded fund (ETF) that will directly own spot bitcoin and ether. This initiative could result in the first index-based crypto ETF in the United States.

On Wednesday, Hashdex submitted its S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). Named the Hashdex Nasdaq Crypto Index US ETF, the fund will initially own bitcoin and ether, with the potential to include other assets based on regulatory developments.

The firm noted in its S-1 filing, “If any crypto asset other than bitcoin and ether becomes eligible for inclusion in the Index, the Sponsor will transition to a sample replication strategy, maintaining bitcoin and ether in proportions determined by the Index.” Additionally, any transition back to a full replication strategy would require SEC approval via a filing under Rule 19b-4 of the Exchange Act.

According to Bloomberg’s ETF Analyst James Seyffart, the fund can incorporate other assets once the SEC grants permission.

Hashdex’s filing comes shortly after the launch of spot Ethereum ETFs, which received final clearance to start trading. Interestingly, Hashdex opted out of pursuing a spot Ethereum ETF and is not a part of the group alongside leading firms like BlackRock and Fidelity, who began trading on Tuesday, totaling a cumulative $2 billion in volume by Wednesday afternoon.

The Hashdex Nasdaq Crypto Index US ETF will be listed and traded on Nasdaq, adhering to the Nasdaq Crypto Index US methodology. Previously, Nasdaq submitted a Form 19b-4 for the fund last month. If launched, the custodians will include Coinbase Custody Trust Company, LLC and BitGo Trust Company, Inc..