Key Points
- Hashdex has revised its S-1 application for the Hashdex Nasdaq Crypto Index US exchange-traded fund for the second time.
- The ETF will exclusively include Bitcoin and Ether, potentially becoming the first diversified spot cryptocurrency ETF in the United States.
Hashdex has made a second amendment to its S-1 application for the Hashdex Nasdaq Crypto Index US exchange-traded fund (ETF).
This revision follows a request by the Securities and Exchange Commission (SEC) for more time to review the proposal.
Understanding Crypto Index ETFs
A crypto index ETF is a fund that tracks a group of cryptocurrencies, providing diversified exposure to the digital asset market.
It aims to mimic the performance of an underlying index by holding the same assets in similar proportions.
The portfolio of the NCIUS ETF will only include Bitcoin and Ether, avoiding other cryptocurrencies, tokenized assets, stablecoins, or crypto-related securities.
However, the inclusion of more assets may be considered in the future.
Other Crypto Index ETF Proposals
Other issuers have also proposed similar crypto index ETFs.
Franklin Templeton, for example, submitted a filing for its Franklin Crypto Index ETF in August.
This ETF aims to track the CF Institutional Digital Asset Index and is initially limited to Bitcoin and Ether due to regulatory constraints.
However, it also has the potential to expand in the future.
On November 20, the SEC delayed the approval decision for the Franklin Templeton Crypto Index ETF until January 6, 2025, as it had received no public comments on the proposed rule change.
Crypto index funds seem to be the industry’s next big focus following the success of Bitcoin and Ether spot ETFs.
Major players like Grayscale and Bitwise are now exploring diversified crypto fund offerings according to Nate Geraci, the President of the ETF Store.
These developments occur as the SEC prepares for significant leadership changes.
Gary Gensler, known for his strict regulatory approach towards cryptocurrencies, announced his resignation effective January 20, 2025.
He will be succeeded by an appointee under the incoming administration led by Donald Trump, which is expected to bring a shift towards more industry-friendly policies.
