Hashdex, an asset management firm, has made significant strides toward launching its cryptocurrency-focused exchange-traded fund (ETF) in the U.S. The company announced on November 25 that it has submitted a second amended S-1 filing with the U.S. Securities and Exchange Commission (SEC) for the approval of its Nasdaq Crypto Index US ETF. This marks an important step in its efforts to gain regulatory approval for a diversified cryptocurrency investment product.
A Diversified Crypto Portfolio
The amended filing outlines the firm’s plans for the ETF to initially focus on Bitcoin (BTC) and Ether (ETH), which are the two cryptocurrencies currently included in the Nasdaq Crypto US Index. Over time, however, Hashdex intends to expand the ETF’s portfolio to include additional digital assets, providing investors with broader exposure to the crypto market.
This move follows an earlier amendment to the initial S-1 filing in October, when the SEC requested more time to review the application. The SEC has historically taken a cautious stance on approving cryptocurrency-related financial products, and Hashdex’s updated filings demonstrate its commitment to meeting regulatory requirements.
Competition and Growing Interest in Crypto Index ETFs
Hashdex’s push for a crypto index ETF comes as interest in cryptocurrency-focused ETFs continues to grow. These products are gaining attention for their potential to offer diversified exposure to digital assets in a way similar to traditional index funds like the S&P 500.
According to Katalin Tischhauser, Head of Investment Research at Sygnum, “Index ETFs are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto.” The efficiency and simplicity of such ETFs make them an attractive option for investors seeking broader exposure to the rapidly evolving crypto space.
Hashdex is not alone in this pursuit. Other major asset managers, including Franklin Templeton and Grayscale, are also seeking approval for crypto index ETFs. Franklin Templeton’s proposed ETF would track the CF Institutional Digital Asset Index, which, like the Nasdaq Crypto US Index, currently focuses on Bitcoin and Ether. Similarly, Grayscale’s Digital Large Cap Fund, which includes a basket of cryptocurrencies such as Bitcoin, Ether, Solana (SOL), and XRP, is in the process of applying for conversion into an ETF.
Regulatory Shifts and the Potential Impact
The regulatory landscape for cryptocurrency ETFs in the U.S. is poised for significant changes. SEC Chairman Gary Gensler has announced plans to step down on January 20, 2025, coinciding with the start of Donald Trump’s second presidential term. Trump, who has expressed a pro-crypto stance, has criticized Gensler’s strict approach to cryptocurrency regulation and has promised to reform the regulatory environment to encourage growth in the sector.
Regulatory analysts suggest that the change in leadership at the SEC could speed up the approval process for cryptocurrency-related financial products. James Seyffart, an ETF analyst at Bloomberg, noted that the SEC’s stance on altcoins like XRP and Solana could be influenced by the new administration’s priorities. While there is optimism about the approval of crypto index ETFs, Seyffart cautioned that the ultimate decision will likely depend on whether the SEC deems smaller altcoins to be compliant with existing regulations.
“Regulatory concerns about altcoins in index ETFs could be reduced if most of the allocation remains in Bitcoin and Ethereum,” Seyffart explained.
Conclusion
Hashdex’s filing represents a significant step toward the launch of a diversified crypto ETF that could offer institutional and retail investors an efficient, regulated way to gain exposure to the cryptocurrency market. While regulatory challenges remain, the potential for approval could be bolstered by changes in the leadership of the SEC and growing institutional interest in digital assets. If successful, the Nasdaq Crypto Index US ETF could mark an important milestone in the mainstream acceptance of cryptocurrency as an asset class.
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