- August 29, 2023
- Posted by: [email protected]
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In the race to introduce a spot Bitcoin exchange-traded fund (ETF) in the United States, crypto asset management company Hashdex has thrown its hat into the ring. The company has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin futures ETF that will include spot Bitcoin in its holdings.
Unlike recent filings, Hashdex’s strategy takes a different route. The company aims to acquire spot Bitcoin from physical exchanges within the CME market rather than relying on the Coinbase surveillance sharing agreement. This innovative approach sets Hashdex apart, and its proposed ETF would carry the name Hashdex Bitcoin ETF, according to information from a 19b-4 filing by NYSE Arca with the U.S. SEC.
Industry experts have taken note of Hashdex’s distinctive filing. James Seyffart, an analyst at Bloomberg, observed that Hashdex’s strategy centers around exchange for related position transactions. This involves swapping futures contracts for equivalent spot exposure, a departure from the usual direct cash purchases from exchanges. Seyffart suggests that this approach could increase the likelihood of SEC approval, given recent developments such as the Grayscale lawsuit, the Ethereum futures submission, and BlackRock’s adoption of the Coinbase surveillance sharing agreement, which have put pressure on SEC Chair Gary Gensler.
Other experts have chimed in on Hashdex’s unique Bitcoin ETF application, including Nate Geraci, president of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson. They believe Hashdex’s strategy can solve some of the SEC’s worries about market manipulation and liquidity in the Bitcoin market.
Neither the SEC nor Gary Gensler have yet commented on the many spot Bitcoin ETF applications, the growing number of Ethereum ETF filings, or the likely approval of a spot Bitcoin ETF this year. The ETF ecosystem remains dynamic, with numerous players attempting to navigate the regulatory landscape and offer innovative investment opportunities for market participants.
