Hashdex Enters the Race for a Spot Bitcoin ETF with an Innovative Approach
Crypto asset management company Hashdex has recently applied for a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States, adding to the growing competition in this market. Unlike other filings, Hashdex’s approach offers a unique strategy for its Bitcoin futures ETF.
Introduction to ETFs and Bitcoin ETFs
ETFs, or exchange-traded funds, are investment funds that trade on a stock market. They derive their value from an underlying basket of assets, such as stocks, bonds, commodities, and other financial instruments. Bitcoin ETFs, on the other hand, track the value of Bitcoin and are traded on traditional stock exchanges rather than crypto exchanges.
Hashdex’s proposal is distinctive because it will not depend on the Coinbase surveillance sharing agreement. Instead, the company plans to acquire spot Bitcoin from physical exchanges within the CME market. As outlined in a filing by NYSE Arca with the U.S. Securities and Exchange Commission (SEC), Hashdex intends to include spot Bitcoin in its Bitcoin futures ETF and modify its ticker to Hashdex Bitcoin ETF.
Expert Opinion on Hashdex’s Bitcoin ETF Approach
Several industry experts have shared their thoughts on Hashdex’s unique Bitcoin ETF filing. James Seyffart, a Bloomberg analyst, believes that the strategy’s exclusive focus on exchange for related positions transactions may increase the likelihood of SEC approval. The pressure on Gary Gensler, the SEC Chair, stemming from the Grayscale lawsuit, Ethereum futures submission, and BlackRock’s utilization of the Coinbase surveillance sharing agreement, further supports this hypothesis.
Nate Geraci, president of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson also express optimism regarding Hashdex’s distinctive approach. They believe that it could help address concerns related to Bitcoin market manipulation and liquidity, potentially easing the SEC’s hesitations.
Despite the growing number of spot Bitcoin ETF applications and Ethereum ETFs, the SEC, along with Chair Gary Gensler, has not made any official comments on these matters. This leaves room for speculation regarding the potential approval of a spot Bitcoin ETF within the current year.
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