Crypto asset management firm Hashdex has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a unique Bitcoin futures exchange-traded fund (ETF) that will hold spot Bitcoin. This move puts Hashdex in the race alongside other contenders for a spot Bitcoin ETF in the United States.
Divergent Approach to Spot Bitcoin Acquisition
Breaking: NYSE files a modification to another ETF, to be now called the Hashdex Bitcoin ETF
Their application is unique in that it will not use Coinbase, they will use prices and acquire spot BTC via CME.
It will hold a mixture of spot & futures positions
Hard to reject imo pic.twitter.com/K1ABKKZX5o
— Alistair Milne (@alistairmilne) August 25, 2023
Hashdex’s strategy stands apart from recent filings as it seeks to acquire spot Bitcoin from physical exchanges within the CME market, rather than depending on the Coinbase surveillance sharing agreement. This approach is outlined in a 19b-4 filing by NYSE Arca with the SEC. The company intends to integrate spot Bitcoin into its Bitcoin futures ETF, and as part of this strategy, it aims to change the ETF’s ticker to Hashdex Bitcoin ETF.
Innovative Strategy and Expert Opinions
Financial analysts have taken notice of Hashdex’s distinctive filing. James Seyffart from Bloomberg highlighted that the strategy involves exchange for related positions transactions, where futures contracts are exchanged for equivalent spot exposure instead of direct cash purchases from exchanges. This approach is believed to have a higher likelihood of receiving SEC approval, considering various recent developments in the regulatory landscape.
Nate Geraci, President of The ETF Store, investor Alistair Milne, and finance attorney Scott Johnsson have also weighed in on Hashdex’s approach. They speculate that this unique filing could address certain concerns of the SEC related to Bitcoin market manipulation and liquidity issues.
Uncertain Regulatory Response
As of now, the SEC and its Chair, Gary Gensler, have not issued any official comments on the recent surge of Ethereum ETF applications or the potential approval of a spot Bitcoin ETF within the current year. The landscape remains uncertain, with market participants eagerly awaiting regulatory decisions that could significantly impact the cryptocurrency investment landscape.