- Hashdex files amended S-1 for U.S. crypto ETF, focusing on Bitcoin and Ether, with plans for broader crypto inclusion.
- Crypto index ETFs are gaining traction, offering diversified exposure, similar to traditional market index funds.
- SEC leadership changes could impact the approval process for crypto ETFs, especially those including altcoins like XRP.
Asset management company Hashdex has moved closer to listing its cryptocurrency-based exchange-traded fund (ETF) in the United States. On 25th November, the company submitted a second amended S-1 application to the SEC. This paves way for the approval of the Nasdaq Crypto Index US ETF.
Expanding Exposure to Cryptocurrencies
The ETF will allow investors to invest in a basket of digital assets starting with BTC and ETH with the possibility of expanding to other assets later. The Nasdaq Crypto US Index currently lists these two coins and does not include other assets. At the moment, there are no other assets included in this index. Nevertheless, Hashdex has stated its intention to diversify the portfolio to include other digital currencies in the future.
The latest filing is an extension of this process that Hashdex had initiated in their quest to address the rules of the SEC. The initial application of S-1 was filed in October and it was followed by an amendment as the SEC asked for more time to consider the proposal.
The amendment was filed as part of Hashdex’s continuous effort to provide all the required and relevant regulatory procedures to gain approval.
Growing Interest in Crypto Index ETFs
Crypto index ETFs are steadily emerging as a hub of interest for asset managers as the market seeks more diverse crypto investment solutions. These are like the normal mutual fund investments where you get a market index exposure such as the S&P 500.
Katalin Tischhauser, head of investment research at Sygnum, have pointed out the effectiveness of crypto index ETFs. Index ETFs are efficient for investors just like how people buy the S&P 500 in an ETF.
Hashdex is not alone in its pursuit of a cryptocurrency index ETF. Other prominent asset managers, including Franklin Templeton and Grayscale, are also seeking approval for similar products. Franklin Templeton, which applied for the Franklin Crypto Index ETF, will base the index on the CF Institutional Digital Asset Index.
The fund currently has Bitcoin and Ether. Grayscale has also sought to alter its Digital Large Cap Fund into an exchange traded fund. This fund consists of a diversified portfolio of assets like Bitcoin, Ethereum, Solana, and XRP.
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