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Application Filed for Combined BTC & ETH ETF

Hashdex files for a new kind of spot crypto ETF with the SEC.
Jack Inabinet Jack Inabinet Jun 18, 20241 min read
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Application Filed for Combined BTC & ETH ETF

American investors may soon gain one-click access to a diversified crypto portfolio on traditional financial rails!

What’s the scoop?

  • BTCxETH ETF: Crypto asset manager Hashdex has filed with the Securities and Exchange Commission (SEC) to launch a spot crypto ETF that holds BTC and ETH (and small amounts of cash) in market cap weighted proportions.
  • Room for More: While the proposed Hashdex instrument will only provide BTC and ETH exposure at launch, other digitally native assets that receive SEC clarity as non-securities – likely via approval of their own spot ETFs – can be subsequently added.
  • Dual Custodians: Many crypto ETFs only custody assets with one party, but Hasdex will implement a dual custody model for its ETF; storing investor assets with Coinbase and BitGo mitigates the risk of a total loss of investor funds.
  • Contingent Approval: Spot ETH ETFs are expected with near certainty to receive final approval sometime this summer, however, it remains important to note that this Hashdex ETF will not receive approval if ETH ETFs are unexpectedly denied.

Bankless Take:

Passive stock indexes like the S&P 500 provide investors with the benefit of effortless diversification, often resulting in superior returns and dampened volatility in comparison to holding single stocks.

Although it is unlikely a meaningful percentage of current crypto investors will prefer to hold a market cap weighted combination of BTC and ETH instead of individually allocating to each asset, this Hashdex product could experience significant adoption when additional digital assets receive clarity as non-securities and new industry entrants follow seeking out easy ways to construct diversified crypto portfolios.

 

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Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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