Crypto asset management company Hashdex has recently submitted an application for a Bitcoin exchange-traded fund (ETF) in the United States. The company aims to launch a Bitcoin futures ETF that will hold spot Bitcoin. This move comes as Hashdex joins the competition among various firms vying for approval from the U.S. Securities and Exchange Commission (SEC) to launch a Bitcoin ETF.
ETFs, or exchange-traded funds, are investment funds that are traded on a stock market. Their value is derived from an underlying basket of assets, including stocks, bonds, commodities, and other financial instruments. Similarly, Bitcoin ETFs track the value of Bitcoin and are traded on traditional stock exchanges, rather than dedicated cryptocurrency exchanges.
What sets Hashdex’s approach apart from recent filings is its decision to not depend on the Coinbase surveillance sharing agreement. Instead, the company plans to acquire spot Bitcoin from physical exchanges within the CME market. As per a filing by NYSE Arca, Hashdex intends to include spot Bitcoin in its Bitcoin futures ETF and rename it to Hashdex Bitcoin ETF.
Industry experts have responded to Hashdex’s unique Bitcoin ETF filing. James Seyffart, an analyst at Bloomberg, noted that the strategy involves conducting exclusively exchange-for-related-positions transactions. This means that instead of directly purchasing Bitcoin from exchanges, the company would swap futures contracts for an equivalent spot exposure. Seyffart believes that this approach increases the likelihood of SEC approval, considering the regulatory pressure faced by Gary Gensler, the Chairman of SEC, due to the ongoing Grayscale lawsuit, the submission of Ethereum futures, and the incorporation of the Coinbase surveillance sharing agreement by BlackRock.
Other specialists, including Nate Geraci, president of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson, have also responded positively to Hashdex’s unique Bitcoin ETF submission. They believe that it could help address concerns regarding Bitcoin market manipulation and liquidity, which were raised by the SEC in their previous rejections of Bitcoin ETF proposals.
As of now, neither the SEC nor its Chair, Gary Gensler, have commented on the spot Bitcoin ETF applications or the influx of Ethereum ETFs. It remains to be seen whether a spot Bitcoin ETF will be approved within this year. The industry awaits further developments regarding the approval of these ETFs, and Hashdex’s innovative approach may contribute to the growing acceptance of Bitcoin ETFs in the mainstream investment landscape.
In conclusion, Hashdex has submitted an application to the SEC for a Bitcoin futures ETF that will hold spot Bitcoin. The company’s unique approach, not relying on the Coinbase surveillance sharing agreement and acquiring spot Bitcoin from physical exchanges within the CME market, has drawn positive feedback from industry experts. As the competition for Bitcoin ETF approval continues, Hashdex’s filing brings new possibilities and potential solutions to the concerns raised by the SEC in previous rejections. The future of Bitcoin ETFs and their mainstream acceptance relies on regulatory decisions and developments in the coming months.
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