Hashdex has proposed the creation of a combined spot bitcoin and ethereum ETF on the Nasdaq exchange in a filing to the U.S. Securities and Exchange Commission (SEC) on June 18.
The proposed ETF would balance crypto assets according to their market capitalization, which is listed as 70.54% bitcoin and 29.46% ethereum as of May 27. Its passive investment strategy would track daily market movements on the Nasdaq Crypto US price index.
An ETF with combined assets ‘makes a lot of sense,’ said analyst James Seyffart. The ETF would not invest in any other spot assets besides bitcoin and ethereum.
Crypto assets qualify for inclusion under a set of rules that include being currently listed on a U.S. regulated digital asset trading platform or serving as the underlying asset for a derivative instrument listed on a U.S. regulated derivatives platform, according to the filing.
Both Coinbase and BitGo will serve as custodians. They will offer separate accounts for individual shareholders.
The Brazilian investment firm Hashdex previously filed with the SEC to create an ethereum ETF but later withdrew its application. The indexed crypto ETF traded in Brazil contains nine cryptocurrencies, with bitcoin and ethereum making up nearly 92% of its value. The company’s spot bitcoin ETF traded in the U.S. contains up to 5% BTC futures contracts and acquires spot assets on the CME.
Hashdex is still required to submit and obtain SEC approval for its S-1 filing. The agency has 90 days to respond to 19-b4, during which it accepts public comments and feedback from other financial institutions on the proposal. According to Seyffart, the SEC’s final decision on the fund should be seen by March 2025 at the latest.
