A Brazilian asset manager, Hashdex, is seeking approval from the SEC for a groundbreaking exchange-traded fund (ETF) in the United States. This ETF would be the first to combine both Bitcoin (BTC) and Ethereum (ETH) within a single fund. This innovative ETF provides a user-friendly avenue for US investors to enter the cryptocurrency market by offering exposure to both Bitcoin and Ethereum. Investors can benefit from the potential growth of these major cryptocurrencies without needing to directly manage individual holdings or navigate the complexities of monitoring bitcoin price and ethereum price.
The proposed ETF would mirror the market capitalization of leading cryptocurrencies, with an estimated allocation of 70.54% Bitcoin and 29.46% Ethereum as of May 27, 2024. It would passively track a benchmark index, aiming to reflect daily market movements without actively managing the holdings. Industry experts see this combined approach as appealing to investors seeking exposure to both major cryptocurrencies. While the ETF initially focuses on Bitcoin and Ethereum, the filing leaves room for the potential future inclusion of other crypto assets meeting specific criteria. Coinbase and BitGo will provide secure custody for the fund’s Bitcoin and Ethereum holdings.
This isn't Hashdex's first foray into crypto ETFs. They previously filed for an Ethereum-only ETF in the US but later withdrew the application. In Brazil, they offer a successful indexed crypto ETF heavily weighted towards Bitcoin and Ethereum.
For the proposed combined Bitcoin and Ether ETF, Hashdex needs to complete the regulatory process. This includes filing a detailed S-1 application and receiving approval from the SEC. The SEC has 90 days to review the initial filing and consider public and institutional feedback. A final decision from the SEC is expected by March 2025.