Crypto fund manager Hashdex has in turn made an application for a Bitcoin (BTC) spot ETF. However, we will see that the structure of this product differs from that of competitors such as BlackRock and could change the game for its eventual approval.
Hashdex management fund applies for a Bitcoin spot ETF
Since BlackRock filed its application to seek approval from the Securities and Exchange Commission (SEC) to issue a spot ETF on Bitcoin (BTC), many players have jumped into the fray.
This is now the case for fund manager Hashdex, which already has a Bitcoin ETF based on futures contracts:
*VERY INTERESTING* 19b-4 filed by NYSE on DEFI ETF…
Changing name to Hashdex Bitcoin ETF & updating strategy to hold spot btc.
Notably, this filing isn’t relying on Coinbase SSA.
Instead will secure spot btc through CME Market’s Exchange for Physical.https://t.co/dBLjCNvAki pic.twitter.com/kmXETHUqB0
– Nate Geraci (@NateGeraci) August 25, 2023
Where this bid differs from what we have seen so far, notably with BlackRock, is that it will not be based on crypto-native platforms such as Coinbase. Note the use of the words “unregulated exchanges”, which may not be insignificant given the SEC’s various actions:
The Fund will hold a mix of Bitcoin spot, Bitcoin futures and cash and cash equivalents, subject to certain investment restrictions. […] The Fund will use the CME’s Market’s Exchange for Physical (EFP) to acquire and dispose of spot bitcoin, rather than trading on unregulated spot exchanges. “
If approved, this ETF will be listed on the New York Stock Exchange Arca (NYSE Arca) under the name Hashdex Bitcoin ETF. More than a new product, it would in fact be a reworking of the Hashdex Bitcoin Futures ETF, which has already been in circulation since 15 September 2022.
Given its different structure, involving players who are already well established in traditional finance, this application could have a better chance of succeeding more quickly than those of the competition. So it will be interesting to follow this, because if it does, it would mark a turning point in the growing institutionalisation of Bitcoin.
