Crypto asset management firm Hashdex has put forward a proposal for a spot exchange-traded fund (ETF) that would directly hold both Bitcoin and Ethereum.
New York-based stock exchange Nasdaq disclosed the proposal on June 18 via a Form 19b-4 filing, which describes the firms' intent to establish the Hashdex Nasdaq Crypto Index US ETF. The filing does not clarify the ratio of the holdings.
This is the first proposal for an ETF that aims to give investors combined exposure to both of the largest cryptocurrencies. The final deadline for SEC approval is set for March 2025.
Bloomberg ETF analyst James Seyffart commented on the announcement:
“A dual Ethereum and Bitcoin ETF filing from @hashdex just dropped. Will be market cap weighted. Shouldn't be a surprise to anyone — makes a lot of sense.”
This proposal follows the SEC's approval of spot Bitcoin ETFs earlier this year and its recent approval of 19b-4 forms for several spot Ethereum ETFs. The SEC still needs to approve the registration statement forms for the Ethereum products as part of the two-step approval process.
Hashdex has chosen not to pursue a standalone spot Ethereum ETF at this time, unlike other firms like BlackRock and Fidelity, which have also secured SEC approval for their 19b-4 forms.
According to its Form 19b-4, the Hashdex Nasdaq Crypto Index US ETF will also hold cash. If the ETF is launched, Coinbase Custody Trust Company and BitGo Trust Company are slated to serve as custodians.
Hashdex's filing also indicates that it will not invest in any other spot cryptocurrencies beyond Bitcoin and Ether. According to the filing:
“The Trust will not invest in crypto securities, tokenized assets, or stablecoins.”
However, the form contains language that allows for the inclusion of other digital assets if approved by the SEC. It states:
“The Trust may invest in additional digital assets if such assets are determined to be consistent with the investment objectives of the Trust and if the inclusion of such assets is approved by the SEC.”