Hashdex’s strategy varies from recent filings in that it will not rely on the Coinbase surveillance sharing arrangement and will instead purchase spot Bitcoin through physical exchanges within the CME market.Hashdex, a crypto asset management company, has entered the race for a Bitcoin exchange-traded fund (ETF) spot in the US. For a Bitcoin futures ETF that will contain spot Bitcoin, the company has submitted an application to the Securities and Exchange Commission (SEC) of the United States
Investment funds known as ETFs trade on the stock market and draw their value from a base portfolio of securities including stocks, bonds, commodities, and other financial instruments. Bitcoin ETFs follow the value of BTC and trade on conventional stock exchanges rather than cryptocurrency exchanges.
With its decision to purchase spot Bitcoin through physical exchanges within the CME market, Hashdex’s strategy varies from recent filings in that it won’t rely on the Coinbase surveillance sharing arrangement. Hashdex plans to add spot Bitcoin to its Bitcoin futures ETF, change the name to Hashdex Bitcoin ETF, and change the ticker, according to a 19b-4 filing by NYSE Arca with the U.S. SEC.
The unusual Bitcoin ETF registration by Hashdex has received feedback from some specialists. The technique just entails completing exchange for linked holdings transactions, according to James Seyffart, a Bloomberg analyst. This means trading futures contracts for an equivalent spot exposure rather than making straight cash purchases from exchanges.
Given Gary Gensler’s pressure from the Grayscale litigation, the filing for Ethereum futures, and BlackRock’s inclusion of the Coinbase surveillance sharing agreement, Seyffart predicts a higher possibility of the SEC’s acceptance.
Hashdex’s unique Bitcoin ETF filing has drawn the attention of several experts, including finance attorney Scott Johnsson, investor Alistair Milne, and Nate Geraci, president of The ETF Store. According to them, it might allay some SEC concerns about market manipulation and liquidity in relation to bitcoin.
The SEC and its Chair, Gary Gensler, have not provided any comments regarding the applications for spot Bitcoin ETFs, the increase in Ethereum ETFs, or the likely approval of a spot Bitcoin ETF this year.