Hashdex S-1 files for the first ETF with Bitcoin and Ethereum in the US

Hashdex, a crypto asset management company, has filed its registration statement, S-1, with the US Securities and Exchange Commission for its Hashdex Nasdaq Crypto Index US ETF.

Notably, the move is a step in its plans to be the first index-based crypto ETF in the US to track some digital assets on the Nasdaq US Crypto Liquidation Price Index.

Hashdex’s Crypto ETF Awaits SEC Settlement

According to the company’s S-1 filing, the Sponsor will move to a sample replication strategy if any crypto assets, other than Bitcoin and Ethereum, are eligible for inclusion in the Index. This will keep BTC and Ether in the specified ratios of the index.

If the Trust decides to return to a full replication strategy, it will be required to file a rule change under Exchange Act Rule 19b-4 with the SEC to amend its listing rules for the new Index Components.

In a post on X, Bloomberg ETF analyst James Seyffart mentioned that the fund could add other assets once it receives SEC approval.

Update: @hashdex has filed an S-1 for its Crypto Index ETF. It will start with just #Bitcoin & #Ethereum but may add other assets if and when approved by the SEC. https://t.co/W3uHyv9MYn pic.twitter.com/DFXouwu4IK

— James Seyffart (@JSeyff) July 24, 2024

The S-1 filing, which describes the security Hashdex aims to offer, was filed about five weeks after the company filed its Form 19b-4 on June 18. The US securities regulator acknowledged this filing in late June. If both filings are approved, the combined cryptocurrency ETF could officially list and trade.

The Hashdex ETF will be weighted based on the free float market caps of the listed crypto assets. Currently, the weighting would be 76.3% BTC and 23.7% ETH.

Additional cryptocurrencies such as Litecoin (LTC), Chainlink (LINK), Uniswap (UNI) and Filecoin (FIL) are also included in the Nasdaq Crypto US Liquidation Price Index and may be considered for inclusion in the Hashdex ETF in the future.

Hashdex submission excludes ETH staking

Hashdex’s S-1 filing clarified that it does not intend to include the Ether stake in its cash-combined cryptocurrency ETF. Meanwhile, BitGo and Coinbase Custody will act as custodians of Hashdex’s Bitcoin and Ethereum assets, which will be held in segregated accounts for individual shareholders.

The S-1 filing came two days after eight asset managers launched their spot Ether ETFs on US exchanges. On the first day of trading, these spot Ether ETFs attracted a total of $590.7 million in inflows, significantly exceeding industry analyst predictions. This figure excludes exits from the Grayscale Ethereum Trust.

The trends changed a day later, however, with exits dominating. As such, ETH’s performance suffered, with the asset falling 10% at one point to under $3,150.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!